- 08 June 2026
HSBC Asset Management's June Outlook: Why economists and markets are describing 'different worlds'
- INSTITUTIONAL INVESTORS
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- 08.06.26
In the firm's "Broadening Out" scenario, AI investment strength gradually spreads beyond the US, oil price pressures ease, and emerging markets benefit from a weakening dollar. Growth runs at around 2% in the US, with the Fed cutting rates toward neutral.
The "Shockwave" scenario paints a darker picture: supply-side shocks collide with unbalanced growth, households retrench, profits disappoint, and a historic bear market in US equities follows, forcing eventual aggressive easing by the Fed.
The third path, "Boom Boom", sees surging AI investment and wealth effects drive a broader economic expansion, with US growth reaccelerating to around 3% and stocks outperforming globally.
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