On January 10th, Schroders Global Investments released a statement stating that in the past month, the global unconstrained fixed income investment team has adjusted their views on the global economic outlook. They believe that the possibility of an economic "soft landing" has increased, while the possibility of a "hard landing" seems to have decreased. The markets are filled with reassuring and joyful news, especially in the United States. In the past few weeks, there has been a significant change in interest rate prospects. The strong stock market has made financial conditions more favorable, and the dovish stance of the Federal Reserve also suggests the possibility of a 75 basis point rate cut in 2024. There are signs of improvement in the global manufacturing cycle, leading the bank to increase the probability of a global economic soft landing to 70%. They have also noticed that financial markets have reflected these expectations in the past few weeks. The US economy is showing strength, especially in the labor market where job vacancies are growing strongly, leading to a decrease in the local unemployment rate for the first time in recent months. While the service sector has not yet experienced deflation in goods, inflation has been consistently cooling down. Due to signs that the impact of tightening interest rate policies on European economic growth may have peaked, the bank's outlook on the economic prospects of Europe and the UK has shifted from being relatively pessimistic to neutral. Both an economic hard landing and not landing are potential risks to consider. The risk of a global economic hard landing still exists, but even though the possibility of a global economic recession in 2024 cannot be ruled out, this risk is significantly smaller than before. The current loose financial conditions should have a positive impact on business activities in the coming months. Another risk is the possibility of a global economic not landing. Recent data shows that small businesses in the US may be facing price pressures again. Therefore, the bank will continue to closely monitor whether the current deflation trend will reverse. It is currently advisable to adopt a "combination punch" asset allocation strategy. The weak economic growth, deflation, and the dovish stance of central banks around the world provide a rationale for investors to hold more long-dated bonds (i.e. higher interest rate risk). However, we need to recognize that financial markets have rapidly reflected their new macroeconomic expectations. Therefore, the bank currently prefers assets with shorter durations that have a higher probability of outperforming long-dated bonds on the yield curve. This allows the bank to allocate in a more reasonable manner under the same macro view. In addition, the bank has adjusted its views on cross-market assets. With the Fed hinting at rate cuts, the bank believes that US long-dated bonds are more attractive than European long-dated bonds. Furthermore, the bank remains optimistic about most high-quality corporate bonds, with secured bonds, securitized corporate bonds, and semi-sovereign bonds being the most attractive in terms of valuation. However, due to recent market changes, the attractiveness of corporate bonds has decreased, especially US corporate bonds. At current valuations, European investment-grade bonds are more favored.