Asian Private Banker

Iran’s Impact on Markets: Where There Is Volatility, There Is Opportunity

François Collet, CIO of DNCA, says the Iran conflict will act as a short‑term inflationary shock, lifting European inflation expectations above 3% and keeping U.S. inflation near 3.25% over the next year. He forecasts GDP growth could be trimmed by 10‑30 basis points, with a potentially deeper slowdown in the United States. Central banks are unlikely to ease rates soon, limiting yield‑curve relief, while DNCA Alpha Bonds remains positioned with 80% in liquid OECD government bonds and seeks opportunities in Eurozone real rates around 1%.