Vice President Mike Pence and Senator Kamala Harris met yesterday in their one and only Vice Presidential debate in Salt Lake City. This was the second most important milestone in the 2020 Presidential election, and early indications on the morning
CROSS ASSET Investment Strategy Monthly #10 October 2020 Investors have been dealing with rising volatility in equities and initial signs of a fall in the extreme market complacency over the last few months. This is leading to some key divergences
The Fed announced an inflection of its long-term objectives by making the 2% inflation threshold not a high limit, but an average objective over time, i.e. it will not harden not its monetary policy in the event of one-off inflation
The ongoing Covid-19 crisis and the resulting market turmoil have confirmed a preexisting trend within equity investing: the increasing relevance of integrating ESG criteria and sustainability into the investment decision. We believe doing so will add value both in terms
The appetite for risk assets has remained strong over the summer lull. This summer season has seen both the confirmation of existing themes and the emergence of new ones. On the former, the decoupling between the real economy and financial
This article studies the impact of carbon risk on stock pricing. To address this, we consider the seminal approach of Görgen et al. (2019), who proposed estimating the carbon financial risk of equities by their carbon beta.
Medium and Long-Term Return Forecasts | Q3 – 2020 All signs indicate we have passed the inflection point of the Covid-19 pandemic crisis, even if this signals a clearer picture moving forward, different uncertainties are emerging. Our latest forecasts, incorporating
Overview: The Asia region was the first part of the world to be hit by the Covid-19 outbreak, but it has also been the first region to navigate a way out of it, thanks to its good management of the
As we enter the summer, conflicting forces in major equity markets have led to a period of temporary equilibrium between fear (risk of second wave, low bond yields, high gold prices) and greed (equities rallying as a result of economies
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
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
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
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
Cyclical conditions are turning more positive for Europe. Easing geopolitical risk and the prospect of massive fiscal resources (national and EU-wide) and monetary support could support a recovery in 2021. The improved …
Covid-19 has triggered a sequence of economic and financial market narratives and is giving way to a new status quo characterised by extreme fiscal and monetary measures, to which markets have responded well, though some volatility has returned in the
From a long-term investment perspective, the unprecedented global crisis caused by the Covid-19 pandemic brings along both challenges and opportunities, which constitute two sides of the same coin for institutional investors such as pension funds. Beyond the unavoidable market turmoil,
Over the past few weeks, most Western economies have remained frozen by the lockdown measures taken to contain the Covid-19 pandemic. These measures have already had an unprecedented economic impact, but the magnitude of the long-term fallout is difficult to
This year was supposed to be the year when policymakers, corporates and investors charged ahead in the fight against climate change. After the disappointing COP25 in Madrid, shocking wildfires in Australia at the end of 2019, an ambitious plan emerged
Amundi’s Quantitative Research team has been studying the evolution of ESG investing across asset classes and geographies for the past several years. With the coronavirus pandemic, we have carefully examined these Responsible Investing trends and have identified some interesting findings:
Central Banks: interest rates near zero The Fed kept its interest rates unchanged. The ECB kept its interest rates unchanged. No movement on BoJ interest rates since 2016.
Since the beginning of the coronavirus pandemic, all eyes have been on the unfolding health catastrophe and the consequences of confinement: economies halted, exploding rates of unemployment (in particular in the United States), and rising debt levels. In this extraordinary
The global background and Italy: if we wanted to characterise the contraction and recovery pattern, we would probably describe it as a ‘long U-shaped’ recovery; in other words, as a gradual normalisation which will take some time before seeing a
Cross Asset Investment Strategy The dichotomy between the false market tranquillity and the high level of uncertainty about the length of the crisis and its long-term implications is striking. In our view, we are …
Pandemic: a neglected risk On 23 February 2020, when Italy announced the Lombardy lockdown, and then on 11 March 2020, when the World Health Organization classified Covid-19 as a pandemic, what started as an emerging disease in China in a
The total portfolio approach (TPA)2 is a holistic approach to investing that has been adopted by an increasing number of institutional investors as a response to the weaknesses of a more traditional strategic asset allocation (SAA)-based methodology. With its focus
"Growth is dependent on ongoing stimulus" -> https://www.opiniopro.com/2020/10/franklin-templeton/growth-is-dependent-on-ongoing-stimulus/ #assetallocation #coronavirus #growth #stimulus
"#Sector Compass #USElection: Weighing the Impact on Sectors" -> https://www.opiniopro.com/2020/10/state-street-global-advisors/sector-compass-us-election-weighing-the-impact-on-sectors/
"The question seems to come up consistently in investment meetings and in every conversation with fellow investors – from retirement plans managing their asset/ liability mix, insurance ..." -> https://www.opiniopro.com/2020/10/nuveen/20-20-vision-a-clearer-path-for-growth-3/ #global #growth
