We are already reaching the peak of economic acceleration. What matters going forward is what will be left of this bounce in growth and inflation. Markets are pricing in a Goldilocks scenario: low inflation and higher growth at trend, but we will
As we have moved into 2021 and look towards COP26, the 2021 United Nations Climate Change Conference in Glasgow in November, the degree of focus around climate-related issues and themes has only intensified. This has equally been reflected in aspects
Why invest in Chinese equities, especially those of China’s ‘new economy’? Haiyan Li-Labbé: Firstly, China is the second largest financial market in the world, and Chinese stocks are attractively priced. Now valued at over $14 trillion, Chinese equities should continue
Understanding the required foundation to build, manage, and measure an impact portfolio. I mpact investing brings a nonfinancial dimension to the investment process—a values‑based approach that seeks positive environmental and/ or social impact as part of distinct performance targets. While
Systematic Fixed Income Outlook: BlackRock’s quant bond experts tackle some hard questions around the recent inflation data. What is behind the headlines? Are rising prices just temporary or the start of something bigger? What does greater inflation uncertainty mean for
Pressure appears to be building for the People’s Bank of China (PBoC) to shift its tighter policy rates stance to an easing bias in the coming months. The latest macroeconomic indicators for May 2021 show that China’s economic growth remains
Seek to exploit market inefficiencies and extract value from entire investment universe. China continues to undergo enormous change, and there are many factors to monitor in this massive and highly complex economy. Significant change continues in relation to China’s economic
Global Asset Allocation Views: High frequency data suggest that economic activity is surging, aggregate household balance sheets are in good health, and economic output in developed markets is expected to surpass pre-pandemic levels by 3Q21. The question, perhaps, might be
This month delivered a surprise from the Federal Reserve, which appeared more hawkish due to the shift in the dot plots. However, after listening to Chairman Powell speak, we believe that little has actually changed. Yes, the Fed has an
We believe this economic cycle is in its infancy and, despite valuation concerns, are sticking with a preference for cyclical assets within our Model Asset Allocation. We make minimal changes, with a small reduction in the allocation to commodities (to
Corporate earnings will likely be the focus after a post‑pandemic recovery. China’s economy is on the right track to recovery in 2021. We expect the Chinese consumer to play a bigger role this year, thanks to pent‑up demand. Successive holidays and festivals
The return of housing as an economic driver gives the Fed options. Home prices in the U.S. are booming and may continue to do so for a while yet. This will likely give the post‑coronavirus economic recovery a very different complexion
As the age-old adage goes, “shame on you if you fool me once, shame on me if you fool me twice.” Timeshare operators learned from their misfortune during the Global Financial Crisis and made substantial changes to their operating models,
Inflation: a word that has sparked huge debate as well as rotation in the market. But is it temporary or permanent, helpful or harmful? One thing is clear: it has been rising around the world. With successful vaccine rollout programmes
Resilient and essential in the Post-Covid environment As an asset class, infrastructure debt possesses key characteristics that contribute to resilient performance. These include the large physical nature of the underlying asset, high barriers to entry and stable revenues linked to
As expected, the FOMC maintained its current target range for the federal funds rate of 0.00 – 0.25% following its June meeting. It also indicated it would maintain its current pace of Treasury and agency MBS purchases totaling $120 billion
Forward-looking views for economic growth and inflation are some of the most critical building blocks for our CMAs. We currently compile these for 16 nations. Based on our forecasts, long-term real economic growth in the developed economies over the next
It is likely to remain above the potential rate for a while. After some wobbles on the back of the bond market sell-off, risk assets have performed strongly over the past month or so. Equity and corporate bond indices are
The private markets (PMs) landscape has matured considerably in recent years alongside an increase in investor appetite. The accompanying flow of capital has helped to carve out and develop the distinct PM asset classes we are familiar with today. In
Market weekly: Thanks to central bank largesse, corporate bond markets weathered the depth of the Covid crisis well. Risks to credit markets today appear low with gradually improving fundamentals, neutral central bank policy and no major supply-demand imbalances. Listen to
The rapid roll-out of vaccinations across the US and the UK, with Europe catching up, pushed developed market PMIs once again to record highs in May. Business activity and new orders have accelerated across both manufacturing and services sectors, business
Gezien de korte-termijnhorizon van geldmarktfondsen, kunnen sommige beleggers denken dat de integratie van ESG (Environmental, Social and Corporate Governance) in geldmarktfondsen niet de moeite waard is. BNP Paribas Asset Management (BNPP AM) heeft een andere visie als duurzame vermogensbeheerder. Langetermijnrisico’s
Quarter one of this year was a miserable experience for the bond market. There was just too much ‘good news’ flowing around the system to contain bond yields. The Biden fiscal push, the successful rollout of Covid-19 vaccines and, of
The european union’s unprecedented foray into the capital markets promises not only a green, digital transformation for the region but potentially a new era of supranational borrowing. For much of the past nine months officials at the European Commission have
In de Investment Outlook van juni geeft Pictet Asset Management haar visie op de wereldwijde economische ontwikkelingen en de gevolgen hiervan op de Asset Allocatie. De belangrijkste boodschap kan kort worden samengevat. Pictet AM verwacht een vertraging van de economische
Market Weekly: On account of the region’s strong economic growth, Asia has a considerable impact on climate change, but at the same time is, perhaps disproportionately, exposed to its effects. That makes engaging with companies and working with the authorities
Since March and April tapering and inflation concerns eased up, U.S. value stocks have regained their lost ground and are outperforming growth stocks by 40% since the vaccine announcement late 2020. How long the value rally will last is yet
It’s been great to see the economy reopen, releasing a tremendous surge of energy. But anxieties remain: Will the economy overheat? Are we on a course toward runaway inflation? Will the workforce return to its former size? While these are
Accelerating disruption creates potential opportunities for value investors. Value stocks have enjoyed a broad‑based rally over the past six months, as the prospect of a robust recovery prompted many investors to embrace companies in cyclical industries where the underlying businesses tend
Anthony Kettle tackles the common misconception that emerging markets – which make up c.25% of the global bond universe – are behind the curve on this industry megatrend. While ESG is quickly becoming a big part of most asset managers’
This white paper explores how corporate event data can be used to manage risk and aid compliance efforts.1 We will give an overview of the risk management process, detail how corporate events can be used in a risk framework, and
At its heart, sustainability is about protecting investors from reputational, operational and financial risks associated with controversial companies or countries, but it also provides a wealth of new investment opportunities to support a more responsible economy. This is why BNP
Global Asset Allocation – The View From Europe: The Federal Reserve has been consistent in its messaging that a near-term spike in inflation pressures will be transitory and recede once COVID-related impacts fade. The latest inflation print showed that prices,
The growth in China’s GDP and equity market over the last 30 years has not been matched by its allocation in investor portfolios. Foreign investment amounts to only about 3% of China’s stock market capitalisation, even though the country now
Recovery is on track, but inflation pressures create risks. The strengthening economic recovery from the coronavirus pandemic appears poised to broaden across regions and countries in the second half of 2021, bolstered by vaccine progress, continued fiscal and monetary stimulus,
As emerging markets matured over the last couple decades, many countries began issuing debt, denominated in their respective local currency, rather than US dollars. This has created a valuable sub-asset class worth more than 3 trillion US dollars, alongside US
Asset Allocation Monthly – June 2021: Investor attention is turning to where economic growth will accelerate next as vaccine rollouts allow more and more economies to reopen. The current leaders, the US and UK, will soon pass the baton to
Positioning your portfolio for the risks and opportunities ahead. Investors have rarely experienced such an extraordinary period. Just as the 2020 shutdown of much of the global economy by the coronavirus pandemic was unprecedented, the recovery this year is likely to
Biodiversity and economic activity are closely linked, so biodiversity loss endangers the economy, us and our prosperity. Nature and healthy ecosystems provide ecosystem services ranging from pollination to flood protection worth an estimated USD 125 trillion dollars. That is almost
In credit: We saw some key economic data last week, in what felt like a seasonal lull for a number of European countries given the late May bank holiday and a week of school holidays. In the UK, sterling hit
When exchange-traded funds (ETFs) were introduced in Europe in the year 2000 it was hard to predict that these products would write an unbroken success story for more than 20 years. This becomes especially true when one is taking into
Tourism has been one of the sectors most affected by the COVID-19 pandemic. Governments worldwide imposed strict movement restrictions and closed borders in the hope of stopping the spread of the virus. According to the United Nation’s World Tourism Organization,
What to do in a negative-yield world? Declan O’Brien, Head of Infrastructure Research and Strategy and Perry Offutt, Head of Infrastructure Americas, give a deep-dive into the evolving and emerging infrastructure sector and the role it can play in investors’
Macro data are increasingly heralding the start of the economic normalization process in regions where the vaccine roll-out has been smooth. In the US more infrastructure spending has been announced. Inflation numbers and expectations have risen, but we see this
The specter of market volatility brought on by large-scale events, such as global pandemicrelated lockdowns in early 2020, has had a strong influence on investor approaches to their portfolios. Investors are responding by building resilience into their portfolios to navigate
Who has the most robust carbon target – ExxonMobil or Chevron? MSCI develops first of its kind framework to assess companies’ decarbonization and net-zero climate targets. NEW YORK – June 2, 2021 – MSCI, a leading provider of critical decision support
De economische groei zal weldra vertragen, maar de inflatiedruk kan nog een tijdje aanhouden. Beleggers moeten dus een defensievere houding aannemen.
Having hit a record high in late April, global equities peaked again in May after a choppy spell. Inflation appears to worry investors less now than it did at the start of the year. The latest indicators are beginning to
Cubism changed art by depicting objects from multiple perspectives. Investors can learn from this approach by looking beyond the narrow confines of the financial industry and seeking a wide range of viewpoints rooted in the real world, argues Tom Coutts,
US long-term yields have risen in recent months on expectations of strong economic growth fueled by fiscal stimulus. Eurozone long-term government yields have followed this movement in a limited way, as Eurozone economies have been hit hard by the Covid-19
