A (healthy) value correction at last - Our weekly cross-asset views

Despite a rather positive news flow this week (Nvidia beating expectations again!) and decent NFP figures (with a limited impact on rates and Fed pricing), risk aversion has continued to rise. Week-to-date, risky assets are having their worst week since April (SPX & MSCI World $ -2.9%) amid concerns about tech, private debt, and cryptocurrency bubbles. The US dollar is a clear winner this week (DXY +1.1%) with markets seeing the Fed skipping a December cut.Nevertheless, many signs of resilience persist, especially in the credit and EM space, indicating that investors are far from capitulation. Real rates have remained fairly stable, and we continue to believe that an inflection (with a significant reassessment of recession or inflation risks) could signal a new shift in risk aversion. This looks like the correction we were expecting 2-3 months ago, and it may well remain a short-term healthy one as many investors are looking to decrease risks after one of the wildest bull ride of history. If anything, the current risk-off move shows that geographical diversification and value equity strategies are clearly to consider for 2026, along with liquid alternative strategies.