Quarterly macro and market insights: Markets rebounded in the fourth quarter of 2022, closing a year marked by high volatility as the US Federal Reserve (Fed) reset its monetary policy path. US equities gained, credit spreads tightened and interest rate
ESG is an acronym for Environmental, Social, and Governance. It was first proposed by the United Nations Environment Programme as a concept in 2004, providing a complementary perspective for evaluating company performance and management in addition to financial performance. Its
It’s been a good start to the year, with positive returns on most assets. Upcoming Fed decisions may determine the immediate path of yields. But bonds are back and we think fund flows may push …
De financiële markten zijn het nieuwe jaar goed begonnen. Naast de daling van de rente, doordat de inflatie heeft gepiekt en de centrale banken de voet daardoor wat van het rempedaal kunnen halen, zijn ook de bemoedigende tekenen van herstel
We remain relatively constructive on Asia ex‑Japan equities for 2023. The short-term setup for China and North Asia looks attractive: Valuations are at cyclically depressed levels, and the markets are very under-owned by global investors. We are seeing clear signs
Jared Franz, for example, says the Fed will keep rates higher for longer, yet when the economy recovers, it will be stronger than prior rebounds. Meanwhile, Robert Lind argues that European policymakers will likely run looser fiscal policies and tolerate
China Market Outlook 2023 KEY INSIGHTS Since the Party Congress, China has announced a significant easing in its zero-COVID restrictions and more measures to stabilize residential property, which is encouraging. China is at a different stage of its business cycle
As the risk of recession looms large over financial markets, how will securitised credit fare? It’s a growing area of bond markets that has become an important anchor of some actively managed, fixed income portfolios. Portfolio manager Xavier Goss discusses
Schroders Economics Group produces thirty-year return forecasts on an annual basis, which incorporates the impact of climate change. This is Part 1 of our paper where we outline the methodology used to incorporate climate change into our return assumptions. In
We continue to believe that, in the new macroeconomic regime we have entered, the positive correlation between stocks and bonds will likely be problematic over the long-term for the traditional 60/40 portfolio. As such, we think that the 40/30/30 framework
ETFs posted strong net inflows, gathering $5.8bn last week. Equity ETFs captured $3.3bn …
Economic and Strategy Viewpoint The coming year is expected to be one of recession for the advanced economies with the eurozone now expected to join the US and UK in recording a fall in output for 2023 as a whole.
Advanced Economies Outlook 2023 The outlook for 2023 is bleak. The multitude of crises have exposed the weaknesses of our economic system, culminating in record-high inflation across advanced economies. Though inflation is set to fall, there will be no early
Mackenzie presents the 2023 Orange Book, our long-term outlook on domestic and global markets. Here, we highlight our expectations for the average return of stocks and bonds over the coming decade. Day-to-day moves in financial markets make the headlines. But what
Long-term Investment Outlook 2023 Introduction We are in a polycrisis. Our ecosystems are on the brink of collapse, our economic system is stressed, and socio-political relations are under pressure. The consequences are increasing uncertainty, lack of progress on the sustainable
Market Perspective Volatility likely to remain elevated in the new year as central bank policy expectations diverge amid evidence of slowing growth and moderating inflation. While slowing the pace of tightening, the US Federal Reserve reinforced its commitment to taming
Below are some takeaways by Capital Group’s emerging market sovereign debt analyst Thomas Kontchou on important economic and policy considerations given the leftist candidate Luiz Inácio Lula da Silva’s victory in Brazil’s presidential election. The leftist Workers’ Party candidate Luiz
In 2020, our assumption started to incorporate the impact of climate change and the energy transition. Each year, we have developed the supporting analysis, and for this year’s update, our central case has moved to the Delayed Transition scenario following
Most assets struggled in 2022. Among alternatives, commodity related categories were at the top of asset rankings (again), while cryptocurrencies and private equity were at the bottom. We expect falling inflation to pave the way for better outcomes …
A deeper earnings downgrade is expected as valuations are yet to fully price in a recession Credit spreads, particularly in higher-grade assets, remain relatively …
It’s a gloomy time of year in more ways than one at the moment. Even the excitement of my recent move to a new house can’t distract from the literal and figurative darkness of January 2023. The war …
Global tactical asset allocation views brief: Global equities slumped over 2022, posting their worst annual returns since 2008, as Russia’s invasion of Ukraine added to already heightened inflationary pressures and caused the biggest energy price shock since the 1970s. Central
Following last October’s National Party Congress (NPC), China’s government is getting back to business to help ramp up growth. This means making significant changes to three core issues that have weighed on China’s economy and stock market, which we will
The first years of this decade have heralded a particularly disruptive period in human history. The return to a “new normal” following the COVID-19 pandemic was quickly disrupted by the outbreak of war in Ukraine, ushering in a fresh series
ESG (environmental, social and governance) ratings are complex and getting more so. Lively debate has been triggered by discrepancies such as Tesla being removed from the S&P 500 ESG index over concerns about working conditions and automated driver safety, while
To many investors, this year will feel like a rollercoaster. Several major developments have impacted the world economy, and in response, financial markets have reacted fiercely by repricing asset markets. Especially at times like these, it’s important to take a
Mike Gitlin, Capital Group’s head of fixed income, sets out the importance of investing in bond funds that deliver on their stated objective. He also explains what differentiates Capital Group from industry peers. We’ve heard you talk about the four
Assessing the impact of the Inflation Reduction Act and other recent legislation on the transition to a lower-carbon world. The transition to a lower-carbon economy is a driver of investment risk and return for our clients’ portfolios – so we
ETFs posted net inflows of more than $4.6bn last week. Equity attracted $2.7bn of net new assets while Fixed Income took in $2.3bn. Commodity and Money Market continued to see net outflows, losing $249mn and $172mn, respectively.
The macroeconomic backdrop, and regime shift, created a challenging environment for EM assets in 2022. Slowing economic growth, accelerating inflation, exacerbated by Russia’s invasion of Ukraine, and tighter global financial conditions were all headwinds. EM local and dollar debt both
The macroeconomic backdrop, and regime shift, created a challenging environment for EM assets in 2022. Slowing economic growth, accelerating inflation, exacerbated by Russia’s invasion of Ukraine, and tighter global financial conditions were all headwinds. EM local and dollar debt both
Private real assets are a powerful source of diversification for institutional investors. Private investments in the relatively illiquid categories of real assets — farmland, timberland, infrastructure and commercial real estate — have exhibited low or negative correlations to stocks and
The Schroders Multi-Asset long-term capital market assumptions are forwardlooking estimates of total returns which are an important component for the team’s strategic asset allocation modelling and portfolio construction. This note presents our latest 10-year capital market returns forecasts in local
A record year for IPOs in 2021 gave way to increasing volatility from rising geopolitical tensions, inflation and aggressive interest rate hikes. Weakened stock markets, valuations and post-IPO performance have further deterred IPO investor sentiment. As pipeline continues to build,
Fixed Income Impact portfolios can be flexibly managed to client objectives Increasingly, companies are being measured not only by their earnings and cash flow, but according to the effect their activities have on the environment and society. As a result,
Challenging economic conditions are setting the stage for an interesting year ahead in the high yield market. As the economy slows and the cycle matures, we believe caution is warranted. However, we expect dislocations to expose intriguing buying opportunities and
The year 2022 proved to be a year of a great reset for fixed income aficionados. Bond prices are sharply lower and yields are meaningfully higher. Following a nearly 15 year period of ultra-low interest rates that starved pensions and
According to the Leading Indicator of Remodeling Activity (LIRA) put together by Harvard University’s Joint Center for Housing Studies, R&R spend has climbed from 9.1% to 17.8% on a trailing four-quarter basis for each of the last four quarters, which
Valuations, now close to their long-term norms after last year’s sell-off, should be less of a headwind for investors in 2023 than in 2022, although global economic growth is slowing on the back of tighter monetary and fiscal …
In the final quarter of 2022, global equities recovered some of the ground lost earlier in the year. Inflationary pressures eased somewhat, and the pace of monetary tightening slowed. The outlook for equity markets remains uncertain in the near term,
De oorlog in Oekraïne, het toenemende conflict tussen de VS en China, klimaatverandering en COVID-19 zorgen voor geopolitieke turbulentie, fragmentatie, en grote economische onzekerheid. In deze Marktvisie bekijken wij vanuit meerdere invalshoeken op welke manier beleggers kunnen omgaan met deze
Central banks have started to moderate the pace of tightening but we are not close to a pivot. Inflation remains too high and US labour market data continue to point towards a tight market. Central banks will keep rates at
Global stocks rose as investors welcomed signs that inflation may have peaked in key markets around the world. Consumer price increases — while still high on a historical basis — moderated in the U.S., Europe and …
Economische ontwikkelingen: ◼ Groeiverwachtingen krabbelen op, met name in Europa ◼ Inflatie daalt verder ◼ Forse daling kortlopende …
2022 summary: the combination of rising risk-free yields and wider spreads resulted in the worst year in IG credit since at least 1970s. History suggests a better …
The full reopening of Japanese borders has been a boon to businesses as the country comes to terms with the hard reality of co-existing with COVID. But with the world grappling with slowing growth and pressing concerns like geopolitical …
Weekly as of 6 January 2022: ETFs posted strong net inflows of $3.3bn last week. Fixed Income captured $2.6bn while Equity took in smaller …
The savings and investment plan that one follows over the course of one’s working and retirement life is among the most critical decisions an individual can make. The balance between consumption and savings determines one’s overall quality of life, not
Last year saw a reversal of many of the past decade’s trends: – the US (-19%) was one of the worst performing markets, the UK was one of the best (+7% in GBP, -5% in USD) (slides 10-11) – growth
