Trading conditions in China have severely deteriorated. After reaching their peak by mid-February, stocks lost earlier gains in March, on evidence of a plateauing economy and as stretched investors' positioning unwounded. Chinese markets were then stuck in a volatile trading
In recent years we’ve seen a surge of interest in exchange traded funds (ETFs) as a cost efficient and effective way to try and replicate market index performance. But are ETFs as effective as investors think? As part of our
Sellers Squeeze through a Narrow Door: Lord Rothschild famously said, “the time to buy is when there's blood in the streets.” A confluence of technical reasons and limited fundamental disappointment has led to remarkable carnage in the merger arbitrage space
Dekkingsgraadscan pensioenfondsen: In deze dekkingsgraadscan vindt u meer informatie over de dekkingsgraad van een gemiddeld Nederlands pensioenfonds. We geven een overzicht van de ontwikkeling van de actuele en (12-maands) voortschrijdend gemiddelde dekkingsgraad in het …
We borrowed a line from a Pink Floyd song for this week’s title, which seemed to sum up the mood in markets last week. The rise in cases of the delta variant of Covid brings fears of a pause in
Because our multi‑sector strategies have the flexibility to invest across many fixed income sectors, we use a range of quantitative and fundamental inputs to inform our sector allocations. The sector strategy advisory group (SSAG) model is one of these tools.
Forecast update: a touch of stagflation We still expect a robust recovery in the world economy, but the outlook has moved in a stagflationary direction as growth momentum fades and price pressures rise. Our forecast for global GDP growth is
The difference between price and inflation The recent jump in inflation reflects an uneven recovery from the pandemic rather than a long-term shift U.S. job growth has been lower than expected even as demand for workers remains robust. Consumer prices
Executive Summary Vaccine-driven reopenings propelled U.S. economic growth in the first half of this year, leading to a significant uptick in inflation. While PIMCO believes that today’s high levels of inflation will likely prove transitory, we believe the Federal Reserve
1 / Summary Within this report, we present the DWS long-term capital market assumptions as of the end of June 2021 for major asset classes. As the world has continued to rebound strongly from the COVID-19 crisis, global risk markets
Uitdagingen voor beleggers na de coronapandemie: Ook voordat de coronapandemie de wereld begin 2020 overspoelde, verspreidden kunstmatige intelligentie (AI) en gerelateerde technologieën zich al van hun bakermat – tech- en internetbedrijven – naar andere sectoren. Door de coronacrisis kwam de
A distinctive approach to investing Capital Group has been investing around the globe for more than 60 years. Its unique multiple-portfolio manager approach, The Capital SystemSM, sets it apart from many other global asset managers. Rob Lovelace – who is
Economic recovery and earnings momentum set to sustain the rotation back to value. Value as an investment style is enjoying a revival. After being described as moribund by some, we started to see a rotation from “growth” to “value” in
Climate change impacts human health in a number of ways. Rising average temperatures mean a higher risk of heatwaves – at the time of writing, the US Pacific Northwest is experiencing ‘life-threatening’ temperatures. Indeed, the Lancet has described climate change
Our expectation of a mini-cycle is playing out largely as expected with US economic data no longer surprising to the upside and Euro area upside economic surprises waning. August should see the US Federal Reserve begin to pivot its policy
We borrowed a line from a Pink Floyd song for this week’s title, which seemed to sum up the mood in markets last week. The rise in cases of the delta variant of Covid brings fears of a pause in
The textiles industry is one of the most pollutive in the world, emitting more CO2 than aviation and shipping combined. But a leading sports firm is showing one way the sector can embrace radical change. I love shopping for clothes
The return of volatility to China markets. China’s equity markets have been roiled by a combination of concerns in recent weeks, culminating in the fallout from the Archegos family office liquidations in late March. However, this volatility has retraced …
Vorig jaar zomer hebben het kabinet en sociale partners overeenstemming bereikt over een vergaande herziening van het pensioenstelsel. Dit pensioenakkoord heeft grote gevolgen voor hoe pensioen wordt opgebouwd en wordt belegd. In deze serie bespreken we het pensioenakkoord en de
Confidence in one’s future retirement starts with recognizing that today’s financial behaviors and progress made toward financial goals affect tomorrow’s outcomes. Confidence declines as retirement approaches, which may reflect increasing anxiety and uncertainty for preretirees as they approach retirement. Retirees
The European economy is emerging from its worst economic slump since the Great Depression. As the vaccine rollout progresses quickly across the continent, mitigation measures and travel bans are being lifted, allowing growth to revive. As the European economy recovers,
The first half of 2021 has been witness to exceptional growth in demand fueled in large part fiscal stimulus and waning Covid-related restrictions. Latest data release indicates the major economies may be at the onset of high-water mark of economic
Various Push-Pull Factors Argue for a Watchful Investment Approach: The U.S. and global high-yield markets experienced a strong second quarter. Year-over-year trends in corporate fundamentals based on first-quarter earnings released in the …
Rising prices for goods and services are one of the biggest risks for investors in conventional government bonds. But there are ways for active managers to generate positive returns from rising – and falling – inflation. The key is to
Value investing is coming in from the cold. After a decade of strong value outperformance in emerging market equities from 2001 to 2010 came a decade of sustained underperformance. In 2020, the value/ growth divergence in EM reached an extreme
In Credit: Bond markets continue to lack much direction. It was inflation week in the US. As expected, the headline rate of consumer price inflation came in at 5.4%, unchanged from the prior month (see Chart of the week), while
A range of emission and temperature change scenarios are examined. It is clear that technology will be key in mitigating change. However, we think large-scale adaptation could benefit infrastructure, engineering, housing and …
Fixed Income Perspectives: U.S. consumer prices see their largest increase since 2008, topping all estimates. That summarizes headlines about recent inflation data. Since the beginning of this year, our view has been that the change …
CPI inflation was lower than expected in July. The slowdown in consumer prices was welcome news for markets, and supports the views of central bankers and others who have deemed this …
Portfolio perspectives – August 2021: The volatility we have seen just in the two months since we published our midyear investment outlook reflects – in our view – the unusually wide range of divergent yet plausible economic outcomes that potentially
Emerging market assets continued to underperform in a week filled with geopolitical upheaval. Low vaccination rates and increasing policy tightening in the emerging world are a source of concern. The market is also worried about Chinese growth prospects, although we
Key Points Rather than predicting what will happen to inflation in the future—a particularly arduous and humbling task—we ask a simple question: What can past inflation dynamics tell us about the equity market’s future returns? We propose two new investment
Marktvisie ESG-integratie: Klimaatrisico wordt steeds tastbaarder, zowel in de fysieke- als in de beleggingswereld. 2020 was, samen met 2016, het warmste jaar ooit sinds het begin van de metingen in 1880: de (oppervlakte) temperatuur bereikte een niveau van 1,02 graden
In Credit: Inflation had long been expected to rise – and rise it has! Data released from the US and UK last week showed a jump in prices that exceeded (increased) expectations by some margin. Starting in the US, Consumer
The Bank of Japan’s (BoJ) recent decision to adjust its ETF purchase programme has given investors plenty to think about from the impact on asset prices to the longer term future of the country’s monetary easing policies. In this paper,
De CO2-prijzen kennen tot nog toe geen succes. Maar ze zouden wel eens snel een pijler van de groene economie kunnen worden. De transitie van een economie op fossiele brandstoffen naar een economie op basis van hernieuwbare energie belooft net
Investment flexibility may enhance risk-adjusted returns. With the economy continuing to recover from the global pandemic, we believe investors could benefit from an allocation to below investment-grade credit. Equity valuations appear somewhat stretched after a rally that began more than
Market weekly: Addressing ecosystem restoration is just as pressing as tackling CO2 emissions and can generate billions of dollars of investment opportunities, as Ulrik Fugmann and Edward Lees, co-heads of the Environmental Strategies Group, explain. Much of the focus in the debate on
In recent years, both the United Kingdom and the Netherlands have introduced significant changes to the way defined contribution (DC) pensions can be accessed. This article examines the changes and reflects on how each country’s DC savers have responded. We
Flash Update: Following the continued improving macroeconomic backdrop, the Fed are expected to signal a cessation of monetary stimulus in the coming months, initially with asset purchase tapering, followed by raising interest rates. In anticipation of such a move, investors
At the same time that China has taken steps to stabilise its slowing economy with measures such as a surprise reserve requirement ratio cut and pledge to increase fiscal support, policymakers continued to advance social policies through increased regulation, the
According to the latest Sentix Euro Break-up Index, the probability that the euro will break up within the next twelve months, as perceived by investors, is at an all-time low. Volatility in eurozone government bonds has all but fizzled out.
China increases regulatory pressure as part of its new five-year plan. By tightening the regulation of education providers on July 23, the Chinese government dealt another blow to investors. Individual stocks in the sector lost over two-thirds of their market
Global Asset Allocation: The View From Europe At the same time that China has taken steps to stabilise its slowing economy with measures such as a surprise reserve requirement ratio cut and pledge to increase fiscal support, policymakers …
Much Ado about Nothing Fears of inflation often make themselves felt at the strangest times. During the 2008-09 recession many were warning of inflation and even hyperinflation due to the government and central bank policies being enacted in response to
Zhikai Chen: On Saturday 24 July, China imposed stricter regulations on China’s education sector, including re-classifying tutoring companies as having “non-profit” status. The State Council officially released the Double Reduction (2R) policy. As a result, China education stocks plunged, and
Na e-commerce- en internetbedrijven heeft ook de onderwijssector stengere regels opgelegd gekregen in China. Door de nieuwe regelgeving staan deze sectoren onder druk. Maar Beijing is niet van plan deze sectoren te vernietigen, aangezien innovatieve bedrijven de drijvende kracht achter
From November 2020 to early May 2021, U.S. value stocks generated strong absolute and relative performance versus U.S. growth stocks, a trend also seen in global equity markets. However, the value rally has recently fizzled, and growth stocks have regained
Monthly Investment Outlook: Our expectation of a mini-cycle is playing out largely as expected with US economic data no longer surprising to the upside and Euro area upside economic surprises …
In Credit: Government bonds seem to be struggling for direction amid a summer lull and after a period of strong performance. US 10-year yields have fallen from around 1.75% at the end of March 2021 to around 1.29% at the
