Aggressive central bank tightening raised bond yields and increased the risk of recession in 2023. As economies slow, fixed income will once again provide portfolio diversification, allowing practitioners to focus on capturing long-term trends such as climate change and artificial intelligence. Renewable energy, electric vehicles, hydrogen fuel and carbon capture offer attractive ways to play the theme of climate change. And while technology stocks may be overpriced, AI promises significant long-term productivity benefits across a range of sectors, including healthcare, marketing, and finance. - Chris Iggo, AXA Investment Managers. Earn 0.25 CE/CPD hrs on Portfolio Construction Forum