Central banks think it is a difficult time, Willis said. Their forecasts suggest that inflation will remain a challenge for some time and, as such, have suggested that interest rates will remain at current levels for an extended period.

“As we gaze into the future, we do see the economic headwinds increasing and are also cognisant that if we do escape a recession and fall into the soft landing zone, that may well mean interest rates need to stay elevated for even longer to ensure inflation is defeated,” he said. “While it may mean some short-term pain, the clearing event of an economic and earnings recession, which brings about interest rate cuts, may well prove to be a more positive reset than a prolonged period of sluggish growth, higher inflation and elevated interest rates,” Willis continued.

He has a relatively cautious view of the world but, as always, needs to balance macroeconomic fundamentals with a view of whether that news is in the price. Given the very sanguine, near complacent, market mood over the past few weeks, Willis does think that volatility will pick up, but he believes that is no bad thing for the opportunistic and stock picking managers he seeks to invest in.