The pandemic has unleashed turmoil across a wide range of industries. Food suffered more than most. Lockdowns and border closures disrupted the distribution of agricultural products and also led to severe labour shortages at food processing facilities.
Carbon pricing in the EU Emissions Trading System, or ETS market, is entering a new phase, signalling that decarbonisaton is well under way in the energy sector and that reducing industrial CO2 emissions will be next, as the EU moves towards its net zero emissions target for 2050.
It seems like global financial markets and economies are experiencing a neverending fluctuation between increased clarity, as we described in last months’ Allocation Views, and continued uncertainty. Depending on …
Investors such as pension funds are increasingly seeking investments with a positive impact, and the surge in Covid-19 bond issuance this year indicates that fixed income is the asset class wellpositioned to deliver positive social outcomes.
Is Big Tech in big trouble? Is there such a thing as being too successful, too influential and just too big? We may find out in the months and years ahead as the world’s largest technology and consumer tech companies
A not-so-great rotation in developed market equities Equity investors, quite rightly, remain resolutely focused on the positive, medium-term outlook for corporate profits rather than the near-term economic challenges. In our view, the economic recovery and rebound in inflation will drive
Less interest, in negative interest rates. Markets at a glance – 8 February 2021 It was a game of two halves for macro markets last week. Italy won in the end, with the UK coming last. For Italian bonds, spreads
In the US, reflation on the back of fiscal stimulus and the exit from lockdowns should lead to modestly higher inflation expectations and nominal bond yields. A renewed ‘taper tantrum’ looks unlikely as excess capacity and high unemployment rates will prevent …
A paler shade of green If only sustainable investing was just about right and wrong; sustainable and unsustainable. Alas, it’s not so simple. Clearly, there are sustainable ‘bad boys’ such as coal companies and weapons manufacturers which sustainable funds do
The bond market sell-off: is this it? Has the pandemic shifted the pendulum for rates for good? For the past four decades, interest rates have relentlessly headed lower. Will Covid-19 turn that trend on its head, as it has done
Entering the World’s Second Largest Bond Market China’s bond market reached $17 trillion in Q3-2020, making it the world’s second largest market after the US. The low market cap to GDP ratio compared with other markets suggests still significant growth
Monthly Market Monitor – February 2021
In 2020, more operating companies began allocating cash to digital assets and cryptocurrencies. This is a new dynamic and a departure from more conventional investing by funds and others in this space. One telling example is MicroStrategy Inc., which announced, last December, that it …
Capital Ideas Talks with Martyn Hole Investment Director, Martyn Hole, shares his view on the outlook for equity markets. He explains why the backdrop is broadly supportive of equity valuations, considers the prospects for different sectors, examines how events of
Columbia Threadneedle Investments provides readers with an in-depth discussion of fixed income assets. One important takeaway is the Biden presidency causing rising inflation expectations.
Monetary policy may stay stable in the future China Chartbook – 4Q 2020 Macroeconomics Key views Regarding economic cycles, we expect demand to catch up with supply more quickly thanks to the multiplier effect. Consumption and manufacturing investment are expected
Determining whether or not we’re in the midst of a bubble has become topical. In our view, bubbles result when the pool of available liquidity becomes overly concentrated into a narrow space. During the Roaring Twenties, for instance, the Dow ballooned to six times its starting size between 1921 and 1929. On the other side of …
Why we think it’s too early to be cautious on equities Macro outlook | February 2021 Value stocks outperformed momentum by almost 30% in November, but then gave back a third of this by the beginning of 2021 (Figure 1).
With the pandemic-induced shutdown of 2020 — which caused the worst recession since the Great Depression — behind us, solid growth is expected across major economies in 2021, according to the International Monetary Fund (IMF).
Private debt and real asset markets can offer investors meaningful return potential along with diversification. David Bouchoucha, head of private debt and real assets, discusses the opportunities of this alternative investment segment. He underscores how important sustainability is in constructing a resilient portfolio.
While a new year may be underway, at least one thing remains the same: low bond yields. We believe that the challenges and risks this environment presents may not be fully understood by investors. For that reason, we have identified three questions that we believe investors should consider: focusing on the diversification power …
Demand for sustainable investment solutions continues to grow. The longterm consequences of short-term decisions are becoming clearer for the broad society. From consumers and businesses to governments and investors, we believe a broad secular shift toward sustainability is underway. The concept of responsible investments (RI) is strengthening every year as investors …
How Are Investors Changing? ESG Asset Owner Survey How are investors’ priorities and practices changing when it comes to ESG investing, sustainability and impact? What are today’s key ESG implementation challenges? Seeking clarity on the issues, we surveyed 256 investors
De vaccinatieprogramma’s komen wereldwijd op snelheid en ook de economische vooruitzichten worden beter, ondersteund door extra fiscale stimuleringsmaatregelen. Daarom blijven we overwogen in aandelen, met een voorkeur voor landen en sectoren die het meest …
As the largest vaccination programme in history commences, risk markets appear to be ignoring the logistical challenges or near-term downside growth risks from tighter lockdowns imposed after infection rates in Northern Hemisphere countries soared over the winter. With the S&P at or close to all-time highs and many …
Since the U.S. elections, asset prices have risen steadily higher. Can the risk rally continue? I believe it can as it is underpinned by three powerful drivers. However, there are also three looming risks that could undermine it.
The retail and hotel property sectors are bearing the brunt of the Covid disruption: weaker businesses are shuttering, vacancy rates are surging, rent collections are shrinking, property values are dropping, and commercial mortgage delinquencies are rising. Investors in these sectors are struggling to find a …
Artificial intelligence (AI) has great potential, but care needs to be taken to ensure it doesn’t continue to propagate inherent biases that exist in society and hamper the achievement of diversity and inclusion goals.[1]
Na een krimp in 2020 – zij het veel minder dan in de ontwikkelde markten – verwachten we dat de reële bbp-groei in de opkomende markten sterk zal stijgen in 2021, waardoor de kloof met de ontwikkelde markten nog groter wordt. De groei zal gestuurd worden door de regio …
The evolution of the coranvirus pandemic gives reasons both for optimism and for pessimism, albeit over different time frames. The pessimism is more in the near term as production bottlenecks hit vaccine supply, countries stumble in rolling out the vaccines they …
Has the tide finally turned for emerging markets equities after a decade of trailing US markets? It’s a question we often hear. After two consecutive years of solid gains for the benchmark MSCI Emerging Markets Index, emerging markets appear well positioned for further growth. The US dollar has weakened, commodity prices have …
Amid rising optimism, preparing for setbacks as recovery unfolds is prudent. The rollout of vaccinations has bolstered optimism around the outlook for the global economy in 2021. Even so, the trajectory of the pandemic will continue to hold sway over near-term
Alternative investments are attracting ever more investors. According to the Chartered Alternative Investment Analyst (CAIA) Association, in the fifteen years between 2003 and 2018 the size of the global investment market doubled, while alternative investments almost tripled to USD 13.4 trillion. This would …
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 het afgelopen jaar. Daarnaast maken we op basis van de laatste marktontwikkelingen een projectie van de actuele dekkingsgraad. Ook wordt een gedetailleerd overzicht gegeven van het effect van marktbewegingen in de afgelopen maand.
In recent weeks, investors were relieved by the positive newsflow around the successful COVID-19 vaccine trials and subsequent implementation of roll-out programmes. However, experts agree that the positive effects on the recovery and getting back to “normality” is not likely to happen before the end of this year. As 2021 looks like a bumpy road, many investors are willing to increase equity risk and directionality, subject to selectivity.
The trend higher in yields has paused. Inflation expectations have stopped rising in what has been thus far the theme for fixed income markets. As mentioned, though the risk to inflation is heightened by recent US political developments …
The Decentralized Finance (DeFi) space has been all the craze this year, with an estimated value of over $11B locked in the DeFi lending market alone.1 It’s likely that you’ve seen new DeFi platforms with impressive annual percentage yields (APY) advertised for different cryptocurrencies …
OpinioPro readers found the BNP Paribas AM article the most interesting this week. The article discusses how the switch of many economies ‘’from a depletive to a sustainable model created a wide range of investment opportunities in many areas including water’’. The three main water-related investing …
Capital Group European Opportunities (LUX) will be available to investors in Asia and Europe with its launch as a Luxembourg-domiciled fund in February 2021. The fund will offer access to a longstanding European equity strategy, originally launched as a segregated account in 1992. The fund will be managed by …
The COVID-19 pandemic raised uncertainty by compounding existing risks and creating new ones. But by the end of last year, investors were optimistic that the worst was over. Looking ahead, we believe that investors will likely see the low interest rate environment as an opportunity to …
What is blockchain technology? Blockchain technology is an umbrella term covering a set of tools, methods, and processes for electronic recordkeeping between multiple participants. Blockchains are peer-to-peer (P2P) networks composed of different entities that collectively maintain and update a shared set of records.
Silver Outlook To Q4 2021: A Year For The Hybrid Metal After a slow start, silver outpaced gold and most industrial metals in 2020. Initially riding gold’s defensive coattails and then getting a tailwind from its industrial traits, silver was
The EU-UK trade deal leaves open questions But the exclusion of some areas brings opportunity for reform. The wait is finally over. Four‑and‑a‑half years after the Brexit referendum, the UK has exited the European Union’s single market and customs union,
Multi-Asset Conversations – Episode 2 In the second short video in the series Colin Dryburgh discusses the opportunities for growth assets in 2021 and Robert-Jan van der Mark looks at sustainability and how we are seeing opportunities in that area.
Full steam ahead for emerging markets? Five reasons why we believe the EM GDP growth differential with developed markets should widen in 2021 After contracting in 2020 – albeit far less than developed markets – we forecast real GDP growth
Central banks in a pickle Uncommon truths We think tapering is off the agenda for 2021 and believe that central banks may purchase increasing amounts of assets. That may be good for risk assets this year but we worry where
Asset allocation and risk modeling of bitcoin in an institutional portfolio Bitcoin recently celebrated its twelfth birthday, but in historical terms it is still very much in its infancy as compared to other major asset classes. In this paper we
Preserving favorable financing conditions Column by Hendrik Tuch The ECB meeting last week was supposed to be rather uneventful, with the key decision already made in the December meeting to increase its PEPP buying program with 500 billion and extend
Value funds—whether global, developed, or emerging—encountered a major style headwind in 2020. Globally, economy‑sensitive value stocks underperformed during the coronavirus pandemic, which was to be expected. Value companies tend to be in traditional sectors that need growth in real economic
Conditions changed irrevocably in 2020. Governments and businesses piled up debt, interest rates fell and central banks became more lenient regarding inflation. A new US president may end a populist chapter in the nation’s history. The global economy, political landscape
"Has the tide finally turned for #emergingmarkets #equities after a decade of trailing #US markets? It’s a question we often hear." 5 reasons why EM equities could power ahead in #2021 by @CapitalGroup -> https://www.opiniopro.com/2021/02/capital-group/5-reasons-why-em-equities-could-power-ahead-in-2021/
The underperformance of Value vs. Growth stocks explained
From the winter edition of our VBA Journaal, written by Jeroen Kakebeeke RBA, Investment Risk Manager at PGGM
#valueinvesting #growthinvesting
https://nieuws.cfavba.nl/publicaties/the-underperformance-of-value-vs-growth-stocks-explained/4a37e54d-5361-11eb-8a1e-005056b303d3
Reflation, Flation, What’s Your Nation? https://www.etftrends.com/model-portfolio-channel/reflation-flation-whats-your-nation/ #ETF #tracker
