On March 20th, Schroders Global Investment released a document stating that after the peak of US stock earnings announcements, investors are now focusing on global inflation and interest rate prospects and their impact on investments. Despite current financial market expectations of rate cuts, particularly in the United States, recent high inflation rates have significantly reduced the expected magnitude of rate cuts. According to Federal Reserve Chairman Powell's semi-annual monetary policy report to policymakers on March 6, 2024, the Fed believes that policy rates "may be at the high end of this tightening cycle." Schroders Global Investment's Multi-Asset team has adjusted their views on stocks and continues to prioritize strategic valuation opportunities, especially in the Japanese and European stock markets. Schroders Global Investment points out that bond yields rose from 4% to 4.25% in February 2024, so investors may further diversify their investments across different fixed income asset classes and increase holdings in areas that offer effective diversification benefits, including Insurance Linked Securities (ILS) with a current yield of 12%, which are not correlated with global interest rate trends. Meanwhile, discussions on the timing of rate cuts are intense in Europe, where opinions from key members of the European Central Bank differ. ECB President Lagarde confirmed at a meeting on March 8, 2024, that the ECB "has just started discussing changing its tight monetary policy stance" and has lowered its inflation expectations for 2024 from 2.7% to 2.3%. From a valuation perspective, Europe's situation is more favorable, with significantly lower economic and profit growth expectations. However, it is worth noting that Europe has not completely escaped the situation seen in the US stock market, where only certain sectors lead the entire market, such as the US tech giants. Schroders Global Investment's European "Magnificent 7" portfolio has performed similarly to the US "Tech Giants" over the past two years. Schroders Global Investment believes that European stocks currently offer investors highly attractive income opportunities, with potential returns of around 5% and the best investment opportunities in the low valuation range of 12 times earnings. European stocks can provide investors with unique and ideal investment choices, offering relatively generous returns while also having significant upside potential.