The stance reflects an economy that is “slowing but not collapsing”, with tariff-related effects feeding through gradually, and earnings that remain robust enough to contain recession risks. “For now, it’s key to stay invested,” says the bank’s global CIO Michael Strobaek. “We see new opportunities in fixed income markets, and have raised our exposure to EM debt in hard currency to overweight.”
Lombard Odier has raised its conviction in emerging markets across equities, bonds, and currencies, arguing that a cooling but resilient global backdrop, three anticipated Federal Reserve cuts this year, and a softer US dollar set up relative outperformance into 2026.
The bank has upgraded emerging market (EM) hard-currency debt to overweight, maintaining an equity overweight position in EM, and turning negative on the dollar while trimming developed market (DM) government bonds to underweight. Gold remains range-bound, with a 12-month target of US$3,400 ($4,368.70) per ounce.
