Our normal way of life has ground to a halt because of the coronavirus disease (COVID-19) pandemic. This also holds true for the economy, as governments have shut down economies to contain the spread of COVID-19 and help their health
Our contention is that most global asset allocators have been underweight Japan equities for a long time. When we ask investors why this is the case, their rationale usually encompasses a combination of three main assumptions: 1. Japan is a
The sharp market fall and speedy recovery during the eventful first half of 2020 has kept tail risk hedging topical: investors have both fresh memories of a painful loss and renewed fears of a repeat. In this paper we summarize
Welcome to Invesco’s eighth annual study of sovereign investors. Since the publication of the first report in 2013, the study has evolved to cover 139 institutions, including interviews with chief investment officers, portfolio strategists and heads of asset classes at
The tectonic shift toward sustainability is gaining pace. We highlight an underappreciated climate-related risk to portfolios: water stress. Negotiations have kicked off over the size and make-up of a new U.S. fiscal package as key benefits are set to expire
Is de gezondheidscrisis die we op dit moment doormaken een ‘zwarte, grijze of witte zwaan’ voor de financiële markten? De kleur die we aan deze gebeurtenis toekennen, is afhankelijk van de voorspelbaarheid ervan. Nassim Taleb, die aan de oorsprong ligt
When the COVID-19 market panic deepened in March, the Federal Reserve put together a $600 billion Main Street lending program to help small- and medium-sized businesses cope as the U.S. economy was tumbling into recession. But there was a wrinkle. Initially,
The Role Of Gold A Less Than Perfect Inflation Hedge Gold has been on a tear over the last year, rising 32% while global equities have languished. Investors buy gold for many reasons, but a common objective is a hedge
The global COVID-19 pandemic brought disruption to voting season across Europe, North America and Japan. Companies struggled to host in-person meetings, but many quickly moved to hold virtual AGMs, aided by technology. We believe that a hybrid system – where
After a bumper few months for equity markets, a recent report1 from Calastone, the global funds network, showed June was one of the worst months on record for outflows from UK equity funds. That follows positive UK market performance for
Some strong firms may benefit from a delayed surge in demand. We believe investors should cast a wide net in the search for secular growth opportunities. Health care firms involved in diagnostics and bioprocessing have stayed largely out of the
De publicatie van de 2e kwartaalcijfers van banken is in volle gang. Een spannende periode. Deze cijfers gaan ons namelijk meer inzicht geven in de impact van de Corona crisis op de bankensector als geheel en de individuele banken daarbinnen.
Outlook for the 2020 vote, and the potential economic and market consequences Presidential and Congressional Elections are less than 100 days away. However, if the elections were held tomorrow, polls suggest Democrat nominee Joe Biden would win and the Democrats
Virus containment is progressing unevenly, advanced in Europe and Asia, but concerning in the U.S. and Latin America. Meanwhile, lockdown easing and economic reopening is accelerating worldwide. With a full global economic recovery priced-in for 2021 and stimulus reflected in
The New Silk Road routes. A significant first step in this direction was the Belt and Road Initiative (BRI, also referred to as the New Silk Road), which was proposed by the Chinese government in 2013 with the aim of
Conventional wisdom has it that Covid-19 will speed up familiar trends, such as those toward automation and digitization. A closer look at one of the supposed beneficiaries, the Internet of Things, suggests a more nuanced picture. The ultimate outcome may
The bond market in China has been bullish after the COVID-19 pandemic outbreak, and China’s interest rate bonds have clearly outperformed global major assets. However, the global major asset prices started to surge in May and global equity market has
We foresee modest global recovery in 2H20, with China growth outpacing that of the US & EU. We expect China GDP growth to rebound to approximately 6% YoY in 4Q20, but the impacts of the U.S. COVID-19 continuing outbreak remain
Interview with Julie Bech and Audhild Aabo Last Wednesday, 22 July 2020, Nordea AM hosted their weekly Morning Espresso session. In this session Julie Bech and Audhild Aabo are interviewed, Portfolio Managers of Nordea’s
Europe and the U.S. Consider State Aid Is China’s Rebound Sustainable? Mortgage Rates Hit Bottom
A dynamic, diversified exposure could be the answer The size of the U.S. equity market means that it typically represents a significant allocation in global equity portfolios. A key challenge for investors in U.S. equities is how to dynamically allocate
De omvang van publieke aandelenmarkten is in veel ontwikkelde economieën sinds de start van dit millennium gestagneerd of zelfs afgenomen. Zo is volgens gegevens van de Wereldbank (2020) het aantal beursgenoteerde bedrijven in de VS tussen 2000 en 2018 bijna
Just months after one of the sharpest drops ever, stock markets globally are nearing cycle highs as most economic data continues to show repair. Fiscal stimulus and income support programs have supported consumer spending over the last several months, as
State Street Global Advisors has identified the key considerations for investors in the coming quarter, and how markets can be navigated using SPDR ETFs. We remain positive on emerging market debt (EMD). While EMD has recently risen,less developed markets have
Increasingly, investors are asking if ESG is a factor. We answer this question using the criteria set forth by our Research Affiliates colleagues in their 2016 Graham and Dodd Scroll–winning article, “Will Your Factor Deliver? An Examination of Factor Robustness
The agreement reached among EU leaders at the end of the longest European Council in history regarding a comprehensive package worth €1,824bn – including the Multiannual Financial Framework (MFF) and the Next Generation EU (NGEU) instrument – is a significant
Aggressive interest rate cuts, liquidity provisions and quantitative easing worked well. Buying facilities rather serve as a backstop. Based on a diminishing marginal effect from Large Scale Asset Purchases (LSAP), the Fed might do more for longer to support
The COVID-19 crisis has highlighted the need for greater awareness of social considerations in investment decision-making. To better understand investors’ approach to social …
Style rotations, where investors switch one type of investment style for another, are nothing new. At some point during most investment cycles different styles – such as growth, quality and value – will outperform at different points as investors rotate
Summary Investors are now grappling with the impact of the COVID-19 pandemic, which has sent global equities into bear market territory as the threat of a severe recession weighs on the global economy. These are challenging, uncertain times for equity
“During major market downturns, we need to focus on how much will be the same and what’s permanently changed. The analogy we use is to look across the valley and see the other side. It was a much different situation
Key points: In the current environment, travel is negatively impacted as friction costs have increased, and the risk/reward balance has changed. This environment will not last forever. Attractive investment opportunities remain available in companies that can get through the current
Recent market volatility has once again refocused investors’ minds onto answering the question of the optimal route to constructing a well-diversified portfolio. The benefits of diversification are always sought, and the recent period has been a stark reminder of these
China’s economic rebound from COVID-19 will likely be gradual. We anticipate growth will pick up in 2021 as more fiscal stimulus is pumped into the economy. Stimulus policies are likely to shift in favor of technology-related infrastructure, rather than property
Covid-19 accelerated markets’ entropy and risk takers will evolve their investment approaches Crises create disruption and Covid-19 is no exception, bringing new complexities, new opportunities and new risks to the investment landscape. From our research angle, we realised that the
The first wave of the economic recovery from the pandemic has generally exceeded expectations. Policy interventions in the form of large fiscal packages, asset purchases and government loan schemes have prevented household and business failures. Economies appeared well-positioned to recover
Double Dip? Fueling the Rally With the coronavirus largely contained across Europe and Asia and some parts of the U.S., there is a sense that the worst of the pandemic may be behind us. As the global economy continues to
Key points Europe has been enjoying a rare moment of outperformance recently. Still, given the abundance of “cliffs” ahead, Europe would do well with a nice policy “parachute”. For now though, the US is still doing more on the stimulus
Why climate change risk management is the hottest topic on the planet and how asset owners and asset managers should be responding. There is mounting evidence that rising levels of greenhouse gas (GHG) emissions are moving the world perilously close
We consider European stocks the most attractive regional exposure to a multispeed global restart, especially versus emerging markets outside of north Asia. We could see a $1-1.5 trillion U.S. fiscal package that extends some, but not all, federal stimulus measures
Wall Street began last week on a negative note, with worries about the resurgence of the coronavirus across much of the US seemingly weighing on sentiment. Renewed shutdowns in California appeared to be a particular focus of worry, with indoor
How to sum up 2020 so far? A rollercoaster is probably the best way to describe it; both from an emotional perspective but also in terms of what the markets have been up to. Over the first quarter, market participants
While the coronavirus has dealt a painful blow to many of the emerging-market economies, we see the challenges arising from this episode as only one of several sets of factors likely to determine EM vulnerability and performance over the medium
This paper highlights five reasons why Emerging Markets (EM) in aggregate are more resilient today than in prior periods. A “healthier” index composition in addition to four other reasons support our analysis that EM drawdowns will be significantly more muted
De coronacrisis stelt de financiële weerbaarheid van huishoudens op de proef. Hoewel de precieze reikwijdte, duur en diepte van deze lopende crisis op dit moment onduidelijk zijn, is het wel zeker dat veel huishoudens tijdens de zogeheten lockdown en de
The second quarter represented a dramatic rebound for financial markets, including emerging markets, after the severe sell-off in March. While COVID-19 continues to pose a generational challenge to the world and the lives and livelihoods of some of the world’s
Although in relative terms Europe appears to be in “a good place” at the moment, to borrow words from Christine Lagarde, daunting challenges still abound. The virus is much better controlled than in the US, but given the lower European
US fixed income can be a valuable source of diversification for European investors, but in the past the cost of hedging of the US Dollar exposure was high, neutralizing this benefit. The situation has changed, and the cost of hedging
As part of the UBS Nobel Perspectives program, our webinar series allows you to ask your questions directly to Nobel Laureates in Economic Sciences. UBS Nobel Perspectives addresses the questions shaping our world, cutting through the noise, and holding the
Methodology –Asset Class Overview For each asset class we present an overview of some key data to provide better insights in the asset class. On the left we show information on the number of funds in the asset class, the
