Schroders - Views and Insights

In equities, Schroders thinks that the long-term risk environment remains supportive of equities. On a relative basis we favour the US, Japan and emerging markets, while we continue to see headwinds facing the UK market. In government bonds they continue to expect a gradual recovery in the US, inflation and growth numbers can still remain below trend.  Geopolitical risks in government bonds remain high. In commodities Schroders remains neutral due to the risks around agriculture prices and the impact Chinese policy could have on sentiment over the short term.