Candriam, a global asset manager, identifies inflation as the primary risk currently facing financial markets. Nadège Dufossé, Global Head of Multi-Asset at Candriam, is implementing a strategy of slight overweighting in equities, specifically focusing on the United States and emerging markets. The firm also holds a long duration position on German government bonds. This approach suggests a belief in potential economic recovery alongside continued inflationary pressures. Dufossé’s strategy aims to navigate these complex market conditions by balancing equity exposure with a hedge against rising interest rates through long-duration bonds. The firm’s outlook reflects a cautious optimism tempered by the persistent threat of inflation. This positioning indicates a focus on growth opportunities while mitigating downside risk.