In February, concerns about inflation caused a partial reversal of gains in the stock and bond markets, leading to a convergence between risky and risk-off assets. Strong US jobs and retail sales data, along with higher-than-expected inflation reports, led to
March 2023 2022 was certainly a tumultuous time for investors. The year was dominated by the Federal Reserve’s actions to fight inflation, particularly given the widespread perception earlier in the year that it was behind the curve. US Core inflation stood
The political realm continues to have an outsized influence on the retirement industry. Whether it's through the passage of the Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0, or through the Department of Labor's (DOL) final letter on
Guy Haselmann, Head of Thought Leadership at MetLife Investment Management, recently sat down with Scott Pavlak, Head of Short Duration Fixed Income, to discuss interest rates and the investment landscape in short duration bonds. Guy: What a difference a year
MACRO ▪ The failures of SVB and Signature Bank reveal fragilities within the U.S. banking system, particularly as it pertains to regional insitutitions (see below). Yet, we believe the situation presents some positive takeaways from a bondholder perspective. The situation
Strategic Research Unit Summary 3 The strong start to 2023 for emerging market (EM) equities faded in February. The China re-opening rally lost steam, and was exacerbated by re-escalation in US-China tensions. Meanwhile, more resilient US macroeconomic data raised the
Uncertainty about the U.S. economic outlook has seen smaller companies bear the brunt of investor fears over the past year. Valuations have fallen to extreme lows, relative to larger companies, despite earnings holding up reasonably well. With the U.S. economy
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 …
General demographics trends can be decomposed in four subcategories: population growth, population ageing, migration and urbanization. Changes in any of these segments can cause different types of impact on both economic and social developments depending on the geographical region these
In a world in which asset managers are struggling to differentiate themselves and outperform their benchmarks, we believe that impact investing provides an answer largely through innovative portfolio construction and we would particularly like to highlight: The results obtained by
As it has been clearly communicated by ECB policymakers in recent weeks, the central bank will hike by 50bp in its March meeting, taking its main refinancing rate to 3.5%. Moreover, President Lagarde will likely signal another large hike in
Albeit painful, bear markets can drive durable changes that can reward patient investors. Three shifts could create opportunities for growth investors: cyclicality in big tech, higher base inflation and interest rates, and deglobalization. Against this backdrop, the setups in select
Pension Markets in Focus provides detailed and comparable statistics on retirement savings around the world. This annual statistical report contributes to the effort of making data on retirement savings available, as the OECD Core Principles of Private Pension Regulation advocates
Africa is set to benefit from new financial infrastructure that is designed to boost liquidity in its sovereign debt and attract private investment into its climate-linked bonds. Can it work for africa and beyond? For more than a decade, pockets of
Equity markets rallied from the beginning of the year into early February, driven by encouraging data regarding the health of the U.S. economy and improved economic outlooks in China and Europe that were supported by the reopening of the Chinese
Banking and capital markets (B&CM) mergers and acquisitions (M&A) have been on a roller-coaster ride for several years. Transaction volumes and values climbed steadily prior to the COVID-19 pandemic, only to hurtle downward in 2020. Activity shot up the following
Over long periods of time there are two different types of bear markets. There are those that are associated with a recession and those that are not. It is only occasionally that a bear market is associated with a recession.
The US authorities took out the “big guns” and acted decisively before the market open to contain the spill over effect from the demise of SVB (now accompanied by Signature Bank) using a two-pronged approach. First, they will “make good”
Equity Market Outlook 1Q23 Economic and Market Review: Key Considerations for Equity Investors After rising interest rates, persistent inflation and geopolitical turmoil pounded equity investors in 2022, we wish we could report that a rebound appears just around the bend.
Eurozone 2023-2024 outlook shock behind, shock ahead The lengthy post-pandemic rebound wave is settling down, and growth normalisation is hitting another, more lasting shock from the war in Ukraine. This is an exceptional slowdown for the economy: annual growth of
Economic developments unfolding over the first few weeks of 2023 offer some hope that a 2023 soft landing for the US macroeconomy is at least possible. Moderating inflation and a muted February fed funds increase contribute to this hope in
Wij verwachten niet dat de inflatie nog lang zal aanhouden, maar we hebben niet bijzonder veel vertrouwen in de groeivooruitzichten van de ontwikkelde wereld. Daarom zijn we onderwogen in Amerikaanse aandelen en aandelen uit de eurozone.
After so many years of rock bottom rates, fixed income investing is back in vogue. It took a pandemic, extraordinary fiscal policies, and of course inflation – but income is back. Depending on where you look central banks are accused
After a decade of dominance by growth stocks, value stocks came back with a vengeance last year: The MSCI World Value Index outperformed its growth counterpart by more than 20 percentage points. This does not necessarily mean that value investing
Used vehicle prices are still well above normal after declining 14.9% in 2022 following nearly two years of unprecedented levels, according to the Manheim Used Vehicle Value Index (exhibit 1). Supply chain issues stemming from the pandemic, while now easing,
As the overall investment environment remains uncertain and the attractiveness of major asset classes is challenged, we believe it is appropriate to focus on currencies as a potential source of return and risk diversification for a portfolio. Indeed, FX has
The February inflation data vindicates the European Central Bank (ECB) hawks. We remain however concerned with the “financial channel”: the January batch for loans confirms the credit impulse in deeply negative. We look at Sweden and the UK as “canaries
The Digital Assets industry was under pressure through 2022 with Cryptocurrency prices correcting sharply, as tighter global financial conditions impacted capital markets. The Digital Assets ecosystem is certainly used to a great deal of volatility, and the implosions of the
Biodiversity Restoration The business case for investing in biodiversity is strong: UBAM – Biodiversity Restoration (BRF) invests in biodiversity “fixers” – solution providers that aim to protect or restore biodiversity. ▪ Infrastructure programmes and regulations drive additional growth for the
While caution is warranted, we think many high yield companies are well-positioned to navigate a downturn given the solid fundamental starting point. In recent years, high yield companies diligently improved their balance sheets, resulting …
from Capital Group’s fixed income team Outlook for bonds brighter even as growth concerns linger Global growth is expected to weaken as central banks remain restrictive, though many economies have shown more resilience than previously expected Inflation should continue to
It has been an extremely challenging year from both a markets and geopolitical perspective. If one were to sum up 2022 in two words, they could be: ‘extreme moves’. Risk assets in general had a terrible year. US equity markets
2022 was a run to forget for investors. However, the “yard sale” of 2022 has created opportunities across asset classes for the coming year, most notably in fixed income, hence its green rating. The equity story is more nuanced in
The focus of the paper is on the environmental footprint of commodities and the incorporation of environmental metrics into transparent, rules-based commodity indices. In the first section, we identify and discuss the various challenges associated with investing in commodities from
It gives us great pleasure to present you with this ‘Guide to Conservative Investing’, which highlights fundamental insights on low-risk investing, otherwise known as low volatility investing. The publication also sheds light on the Robeco Conservative Equities strategy, which offers
Volatility as a measure of investment risk is widely accepted by academic researchers and industry professionals and has become ubiquitous in investment analysis. Furthermore, it is among the few financial variables that exhibit predictable time variation. Hence, there is an
We’ve finally left annus horribilis 2022 behind us—and while there are still some gloomy pockets in the economy, some market areas started the new year off on a strong note amid positive developments that give reason for hope.
Credit Suisse Global Investment Returns Yearbook 2023 Summary Edition: With the depth and breadth of the financial database that underpins it, the Credit Suisse Global Investment Returns Yearbook has established itself as the unrivalled authority on long-term investment returns. We
After nearly three years of zero-COVID policies, the Chinese authorities relaxed most restrictions towards the end of 2022, including “harsh lockdowns, mandatory testing, and centralised quarantine for positive cases and close contacts.” While this relaxation in restrictions has been reportedly
Key points Water stress is a matter of availability, quality and access – and can unevenly affect countries, industries and individuals We think there may be particular risks in emerging countries where agriculture and industry can demonstrate high levels of
• German stagnation—rising insolvencies? German business insolvencies are rebounding albeit from a low level. • US real estate—trouble (still) ahead? Some housing market indicators have stabilized, but downside risks continue due to weaker domestic activity. The outlook for commercial real
Markets have started 2023 strongly as some of the headwinds that dominated markets in 2022 have started to dissipate. China has reopened its economy faster than expected; warm weather in the euro area has eased concerns over natural gas shortages;
Rentestijging geeft duw in de rug De dekkingsgraadscan In deze dekkingsgraadscan vindt u meer informatie over de dekkingsgraad van een gemiddeld Nederlands pensioenfonds. We geven een overzicht van de ontwikkeling van de feitelijke en (12-maands) voortschrijdend gemiddelde dekkingsgraad in de
Capital Group’s founder, Jonathan Bell Lovelace, was a pioneering investor back in the days of the Great Depression. Almost a century later, his innovative emphasis on fundamental research still guides us. Research is all about building a deep and well-rounded
Biodiversity matters for the finance sector. Financial institutions may face financial, market, reputational and legal risks when they invest in economic activities that cause adverse effects on biodiversity or are highly dependent …
• ETFs posted $516mn of net inflows last week. Equity gathered $890mn while Money Market exposures attracted $105mn. • Fixed Income weathered …
Market Update A Monthly Performance Report February GPR 250 Index falls 2.3% in February 2023 February 2023’s market action was a reversal from January 2023’s. The GPR 250 Index declined (-2.3%) in the calendar year’s second month, in sharp contrast
What to watch Windsor Framework to the economic rescue – The lifted uncertainty could be sparing the UK economy 2.5% of business investment and a third of a GDP point in 2023-24. US monetary aggregates – The Swan song? Since
Asset Allocation form HSBC Sentiment has improved as inflation moves lower and activity data are holding up better than expected… …with China’s reopening the biggest upside risk for the global economy Early signs of consumer weakness are worth watching
Generating income is a key role of fixed income. For investors, the durability of income streams becomes more important amid heightened volatility in both equity and bond markets. Capital Group portfolio manager Damien McCann provides context around …
