Tilmann Galler: Despite market challenges, the fundamentals of the global economy remain strong

"Despite the challenges facing the markets, the fundamentals of the global economy remain strong," said Tilmann Galler, Global Market Strategist at J.P. Morgan Asset Management, addressing the 10th International Funds Summit & Expo that was presented by CIFA and Invest Cyprus in Nicosia.

Analysing the current trends and prospects of the global economy and investment landscape, Galler highlighted the sound fundamentals of the economy but also the risks associated with high market valuations.

Galler first emphasised that despite the challenges facing the markets, the fundamentals of the global economy remain strong. However, the development of the markets from a geographical point of view is expected to change in the next period. The United States, for example, may experience a slowdown as the economy moves away from previous fiscal support to households and disposable income from the pandemic, which has been depleted.

According to Galler, corporate balance sheets remain strong in many areas, but investors should remain cautious. Market valuations have risen significantly globally, making markets less attractive from an investment perspective. Still, Galler said investors have reason to be optimistic, although they should also be cautious about their expectations for medium-term returns.

One of the key points of the presentation was that while global growth is forecast to remain strong over the next 12 months, the growth path will not be uniform. Galler argued that developing markets will likely achieve faster growth rates compared to developed markets, which may create new opportunities for investment in these areas.

The analyst added that investors should adjust their strategies and closely monitor market developments, recognising that high valuations increase risks while also providing opportunities for those who can capitalise on emerging market trends.

Ending his presentation, Galler stressed the importance of diversifying investment portfolios in order to reduce risk and take advantage of new opportunities emerging in the ever-changing global economic landscape.