Julian Howard of GAM Investments examines the potential that markets now have to avoid fundamentals, even in times of coronavirus. We feel that markets have for some time now been largely ignoring fundamentals. This remains the case even as coronavirus
Across the Multi Asset Open range, gold has been an important asset and hedging component for the portfolios over the last few years. Chris Forgan, Portfolio Manager and Charlotte Harington, Assistant Portfolio Manager of the Fidelity Multi Asset Open range
Even by the oil market’s standards 2020 has been exceptionally volatile. The market has faced unanticipated supply and demand shocks, leading to the commodity’s worst quarter in history. Louise Fribourg, Markets Analyst within our Multi Asset team explores what the
SEEKING GUIDANCE At times of stress we need anchors. Pontification is not good. But it’s expected in almost every video and podcast. Let’s look instead at some of the guidance that true experts and greater minds might be giving us
The fashion industry is a complex business which will experience major structural changes in the years ahead. According to United Nations, the industry consumes more energy than aviation and shipping combined and contributes to around 10% of global greenhouse gas
COVID-19 has pressured the global economy in an unprecedented way. What will be the lasting impacts? In order to get a full picture of the impact of this global pandemic, Invesco’s Global Market Strategy (GMS) Office has partnered with a
The EURUSD continued its sideways movement in April, although the range narrowed significantly. The outlook for both economic areas remains bleak and highly uncertain, both of which point to a sustained sideways trend. In this environment, long-term investments in either
Theme of the month: Slowly coming out of limbo International economies find themselves in different stages of lockdown. China has eased most restrictions, but economic activity is struggling to make a full recovery. Europe and the US both went into
The economic shutdown due to the coronavirus pandemic has led to a steep fall in greenhouse gas emissions around the world. Estimates suggest it has fallen by a quarter. This means that global carbon emissions may end up having reached
What is the Best Approach? Unfortunately, portfolio rebalancing is not a free lunch. And there is no ultimate rebalancing rule that applies universally. Investors with different goals and preferences …
Market volatility never feels good. The kind we’ve felt amid the coronavirus pandemic has been particularly taxing. Of course, this is no ordinary moment in history. It will be a defining moment for individuals, businesses and industries worldwide. Long-term stock
Investors found few places to hide in the recent and sudden equity market drawdown. Even previously defensive, low-beta stocks weren’t exempt from losses. In this paper, we share our observations of an anomalous shift in equity betas across the market,
Insight Report The first quarter of 2020 came in roaring like a lion and went out like a (slaughtered) lamb. In the first half of the quarter, stock indices around the world were pushing new records week after week up
How Dispersion Creates the Opportunity to Express Skill Having skill at an activity tends to be a good thing in life. Skill can lead to success in academia, the arts, athletics, business, and politics. But for skill to have a
As a landlord and investor in real estate, I am closely watching how the world adapts to the global lock down. In our case at Momentum Global Investment Management, the transition from office to homebound working has been seamless. I
The breadth of the economic shutdowns to contain the spread of the coronavirus will affect nearly every sector across the global corporate universe—some positively, but most negatively. Therefore, credit selection will be paramount to generating positive alpha going forward. Thorough,
We love tales of successful entrepreneurship. We admire tech titans who start by cobbling together computers in a parent’s garage, researchers who spend years perfecting and then producing revolutionary medical therapies, and small people with big ideas who overcome serial
As economic data is finally reflecting the impact of economic lockdowns, markets have seen a meaningful risk rally, with US markets recovering significantly from the over 30% drawdown depths. Given the extent of the slowdown and the still uncertain duration
Amid the depths of a global COVID-19 pandemic and recession, global equities rebounded dramatically over the past few weeks, with the S&P 500 retracing more than half of its sharp 35% plunge. Much of that rebound reflects the anticipation and
As many companies plunge into the financial unknown, the tech giants could emerge stronger than ever. While many businesses struggle to survive under the global lockdown, the largest technology companies remain afloat and in some cases are even thriving. Microsoft
Investment Insights The ongoing market volatility caused by the COVID-19 pandemic has resulted in record trading volumes against a backdrop of reduced liquidity in all asset classes. Exchange Traded Funds (ETFs) have so far, and once again, proven their resilience
Global economic activity is being deliberately frozen to stem the coronavirus pandemic. This initial shock is very sudden and deep. Yet what matters for asset pricing is the cumulative impact of the growth shortfall over time. We believe that policy
While the market has staged a spectacular and unanticipated rally, looking at the broader indices can be somewhat misleading. Year-to-date, the S&P 500 Index is still down -15%, but large cap tech and healthcare indices are down 3% or less.
Market perspectives Asset-class return outlooks Recent market performance has moderately raised portfolio expected returns. Our preliminary 10-year annualized nominal return projections, as of March 31, 2020 …
A global update from Franklin Templeton Multi-Asset Solutions When we turned the calendar over to a new year and a new decade, little did we know how different the world would look in just three short months. A silver lining:
For the first time ever the Fed will be aggressively buying corporate bonds This significantly reduces the main market risks, such as: Liquidity risk Risk of funds’ closures Refinancing risk Fallen angel risk And it is ready to do more.
Weekly commentary Global economic activity is being frozen to stem the coronavirus pandemic. Yet implications for asset prices will depend on the cumulative impact of the growth shortfall over time. We believe that policy actions to cushion the impact of
Gauging investor interest The coronavirus is a social issue that has brought unprecedented disruption to societies and is impacting the wellbeing of the world’s population. Capital markets are responding to this challenge with more than $9 billion of social bonds
Investing Strategy Commentary Health Policy Remains the Key Aggressive action by the Federal Reserve has helped restore some liquidity and animal spirits to financial markets, while fiscal policy is starting to kick in despite cumbersome transmission mechanisms in some cases.
Week Ahead Focus: ECB, Eurozone Q1GDP and Inflation, US Fed and Q1 GDP In the current environment, central banks are not waiting for scheduled meetings to make decisions, which reduces the importance of these meetings. For example, since the last
Gilles Moëc's Macrocast As advanced economies are on the brink of exiting lockdown, we explore again what could be the profile of growth this year. Mechanically, entering and exiting lockdown, even gradually for the latter, would result in massive gyrations
Een empirische analyse van de strategieën van doorstromers op de woningmarkt In dit paper bekijken we de manier waarop doorstromers op een lokale markt van woning wisselen, en meer specifiek of ze beginnen met de verkoop van hun oude woning
1Q20 earnings: Virus oddity Global stock markets saw an unprecedented level of volatility in March, as investors attempted to discern how the rapid spread of COVID-19 would aect the economy and corporate profits. The past few weeks have seen a
The coronavirus panic, falling oil prices and a weaker domestic economy largely inuenced the recent Japanese market correction. However, we believe global and domestic cyclicals are well positioned for the eventual recovery. The current performance of the Japanese markets
Behind the volatility lients have asked us about the difference between the Global Financial Crisis (GFC) and the crisis we face today. During the GFC, control of the recovery was largely in the hands of the government bailing out troubled
Monthly Investment Strategy Key points As some capacity is being re-created in healthcare systems, exiting lockdown by mid-May looks doable. We think it will be a subdued rebound though, and economic policy will need to help “for the long haul”.
Global equity volatility remains elevated after spiking to levels not seen since the global financial crisis as investors sold equities somewhat indiscriminately over the past several weeks. Valuations and corporate profit margins were rich coming into the coronavirus pandemic, priced
Lyxor mutual fund selection After an exceptional year in 2019 for risky assets, the first of quarter 2020 proved to be an unprecedented period in market history. The rapid spread of the Coronavirus led to a sell-off across the board
The Fed has expanded the Term Asset-Backed Securities Loan Facility (TALF) in an effort to improve financing for households and small businesses. Liquidity has improved dramatically for TALF-eligible assets now that both dealers and investors know the downside is relatively
Do countries meet WHO recommendations for rolling back lockdown? As countries begin to roll back ‘lockdown’ measures, how and when do we know it is safe to do so? The Oxford COVID-19 Government Response Tracker (OxCGRT) provides a cross-national overview of which countries
23 April 2020 A reprieve in oil markets led to a reprieve in equity markets, which rebounded 1.5% in Europe and 2.3% in the US after two negative days. WTI prices bounced to USD15 per barrel and Brent recovered to
While much uncertainty remains, one aspect of the COVID-19 market shock is clear: The Fed will not stand in the way of the economic recovery. By the end of March, the COVID-19 global pandemic had a deep and profound effect on virtually
Following a record-breaking stock market crash, there has been a 30% rebound. We examine a 135-year history of such rallies and ask if this one is a false dawn.
#17 It’s time for the best read research again! But let’s start with an article that was read the longest: “Credit markets will remain challenged amid market volatility from COVID-19” by Capital Group. While this article was published in March,
Since 2006, when the pri was introduced, private market investors have not always been consistent in the adoption and application of esg fundamentals: but we are reaching an inflection point. esg engagement is undergoing a shift from a “nice to
Visie op asset allocatie maart 2020 Het duurde even voordat het coronavirus echt grip kreeg op financiële markten. Maar toen de besmettingen ook buiten China toenamen ging het hard. Met 15% in een week was de daling van aandelenmarkten vrijwel
Given the significant turbulence currently gripping markets, we have prepared a summary of our views on the main asset classes.
A new high in gold prices The stars seem to be aligned for gold prices Improvement in investor sentiment, aggressive monetary policy easing, ultra-low interest rates and fiscal stimulus have all supported gold prices We remain cautious and we expect
Just a month ago, we didn’t know whether western democracies’ unprecedented lockdowns would be sufficient to slow the spread of the coronavirus. Now, markets have risen sharply as investors have dared to look beyond the peak of the pandemic. Given
Corona-Virus weighs on Eurozone economy All countries in the Eurozone have gradually begun to impose significant restrictions on public life from mid-March onwards in order to stem the spread of the coronavirus. We are therefore lowering our GDP forecast for
