Market Risks for the Rest of 2023 and Beyond

John Moninger speaks with John Hockers about the prominent global risks that are top of mind for him and his team and how these themes are being used for investment risk management across all of the Allspring investment teams.

Purple petals.



Market Events

Key takeaways

  • The Investment Analytics team has two main mandates: provide analytics to our investment teams and provide a credible challenge to the risk-taking in portfolios.
  • On geopolitical risk, we are monitoring the conflict in the Middle East for expansion into the Persian Gulf, which could drive oil prices much higher.
  • On economic risk, the probability of a prolonged U.S. government shutdown remains high, but the largest impact would be if it edges the global economy into a recession.
  • The return of bond vigilantes in the U.S., a concept where investors in Treasury securities may protest and decide not to buy them, could lead to a bond market flash-crash.

Market Risks for the Rest of 2023 and Beyond