“Call of the Peak irrigated Freshly delayed, but it ain’t broke for the second half,” the strategists led mislav metezkas Wrote in a note. “The Fed’s continued unfavorable reappraisal has hurt markets significantly, but it doesn’t need to be a template for that.” He also expects inflationary pressure to ease in the second half.

US and European stock markets have been rocked since April, with stubbornly high inflation and brash central banks increasing the risk of a recession. The selloff has prompted Wall Street strategists to cut year-end targets for the S&P 500 — they expect the index to mostly bounce back, ending the year just 3% lower, according to the latest. bloomberg Survey.

While the Fed’s so-called dot plot still suggests an aggressive pace of hikes, “if the Fed starts acting on expectations, rather than surprising the upside, it could go a long way in stabilizing market sentiment.” It is,” said the strategists.

He reiterated his recommendation to add direct exposure. China And that they remain overweight on emerging markets compared to developed markets. Of the latter, they are neutral US equities and overweight UK and euro-zone stocks.

Across sectors, strategists said they were overweight miners because valuations appeared attractive despite recent outperformance. He added that the group also offers an “extraordinary” dividend yield at 10%.