The new nominal – The powerful restart of economic activity has broadened, with Europe and other major economies catching up with the U.S. We expect a higher inflation regime in the medium term. We see the Fed normalizing policy rates only in 2023 and the European Central Bank staying on hold for much longer. Tactical implication: We are overweight European equities and inflation-linked bonds. We are neutral on U.S. equities. We upgrade EM local debt to overweight. Strategic implication: We remain underweight DM government bonds and prefer equities over credit. China stands out – China is on a path toward greater ... (full story)