Late-Cycle Signals and Structural Shifts

LGIM’s Midyear Global Outlook brings together views from its investment and economic teams to assess the risks and opportunities shaping global markets in a late-cycle environment.

• Macro turning points: US exceptionalism continues, while growth remains fragile in Europe and China, reinforcing a regionally selective approach.

• Sticky inflation, cautious easing: Central banks face slow progress on services inflation, delaying rate cuts and raising questions about the durability of disinflation.

• Portfolio positioning challenges: Equity markets are near highs, credit spreads are tight, and illiquid asset valuations remain under pressure, requiring disciplined allocation.

Curious how LGIM translates macro uncertainty into positioning calls? Dive into the full outlook for asset class breakdowns and forward-looking strategy.