Every quarter, our fund managers analyse trends in the global economy and financial markets. Read their views on the first quarter of 2021.

Macroeconomic environment

• Structural obstacles to economic growth persist, but growth could be temporarily accelerated by cyclical factors.
• The trend towards higher public spending points towards higher inflation in the longer term.
• While monetary and fiscal orthodoxy is crumbling in the West, it still prevails in the East.

Financial markets

• Equity valuations increased in 2020 for the second consecutive year and are now at high levels.
• High multiples will weigh on future returns. 
• In an environment in which interest rates are kept at artificially low levels, equities can serve as a hedge in a higher inflation regime.

Guy Wagner, Managing Director

An economics graduate from the Université Libre de Bruxelles, Guy joined Banque de Luxembourg in 1986 where he was head of the Financial Analysis and Asset Management departments. He was appointed Managing Director of BLI – Banque de Luxembourg Investments in 2005.

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