This report discusses how the tightening of monetary policy and inflation have affected fixed-income markets and business models, leading to tighter financial conditions that are likely to continue. The report also explores potential areas of strain for investors, such as
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
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
Megatrends zijn een groep krachtige sociale, demografische, milieu- en technologische krachten die onze wereld veranderen. Lees hoe ze de groei op lange termijn achter beleggingsthema's stimuleren. Thematisch beleggen in seculaire groei Een belangrijk kenmerk van thematisch beleggen in aandelen bij
It has been a challenging year for fixed income markets in 2022 amid rising inflation and slowing global growth. While uncertainty is likely to remain elevated, today’s starting yields offer an attractive entry point for long-term investors. Yields across sectors
Balancing acts. As the Fed walks the line between curbing inflation and averting recession, anxious investors are seeking to balance the two risks. Amid the uncertainty, we believe stock selection matters more. As Q4 begins, we see …
Earlier this month, Cliff Asness at AQR wrote a really interesting piece about interest rates and how they may not be as related to the valuation or performance of growth or value stocks as we all think. This piece followed
Can you elaborate on the growth and income philosophy of CGEGI and how that informs your positioning? Alfonso: For me, one of the most attractive features of the growth and income approach is that it gives managers complete discretion to
That last two years have been tumultuous to say the least, with a seemingly unending onslaught of challenges (COVID-19 chief among them) impacting economic activity and general daily life. Interestingly, however, forward-looking financial markets have largely been able to take
What do Netflix, Peloton Interactive, Coinbase, and Palantir Technologies have in common? I admit it isn’t a particularly challenging question. As anyone who has been following the U.S. stock market in the last 10 months knows all too well, they
Innovation stocks have become a popular investment theme but are facing scrutiny. We build a half-century backtest of innovation that invests in a rotating portfolio of technologies trending in patent data. Innovation has delivered positive long-term returns distinct from growth
Clear insights into multi-asset investing, macro and research Key points As our multi-asset franchise, All Roads, reached its 10-year milestone, we applied the investment and research insights gained in the past decade to assess the prevailing risk of Q1 –
Despite the many unknowns, we developed five main conclusions regarding the cyclical six- to 12-month outlook that we think are most relevant for investors at this stage. We will discuss the longer-run, secular ramifications of the current situation at our
There’s no doubt the war in Ukraine has clouded the economic outlook. Commodity prices have soared following Russia’s invasion putting more pressure on households’ real disposable income, and dampening growth prospects. But there’s real momentum behind the UK recovery going
Podcast – Episode #1 The various countries that make up emerging markets have shown incredibly rapid and dynamic development. In this first episode we look ahead to the next decade with Capital Group Investment Specialist Valeria Vine: where are emerging
Against the spectre of soaring energy prices, labour shortages and supply chain constraints, a question that has arisen in the US has landed firmly on European shores: will inflation continue to rise and how persistent will it be? The prevailing
Global equities recorded double digit gains in 2021 for the third year running, as economies continued their recovery from the pandemic, in turn feeding corporate profits. In that regard, it was more of the same as previous years but beneath
Avoid complacency when seeking to buy and hold durable growers. The strategy’s largest holdings and sector allocations bear little resemblance to where they stood two decades ago, a reminder of the massive changes that have taken place in the global
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
Smart Beta Compass The recovery trade turns to Quality, creating opportunity in Value and Dividends. Following a strong start to 2021, equity markets continued to move higher in Q2, as the further deployment of vaccines globally is helping critical markets
MID-YEAR LETTER FOR 2021 Asset Allocation Team: Equity Allocation Strategies Key Points The Value vs. Growth reversal is delivering returns, with a long runway left. The historic valuation gap between global Value and Growth stocks finally began its reversal. Our
In the past, the ‘S’ in Enviromental, Social and Governance – the societal side of ESG – tended to get less coverage than the environmental and governance components. Today that makes little sense – we face three, interconnected crises –
As recovery from the Covid-19 recession appears to be gaining traction, prospects for rebounding economic growth and employment across UK regions and cities is now worth contemplating. Initially, the recovery should revive activity and jobs in the sectors that were
Mid-Year Outlook 2021 The view of investors on the outlook for US growth and inflation has varied significantly over the course of the year. Following the positive vaccine trial results last November, and particularly with the Democratic Senate victories in
It is likely to remain above the potential rate for a while. After some wobbles on the back of the bond market sell-off, risk assets have performed strongly over the past month or so. Equity and corporate bond indices are
The growth approach to income asks investors to look forwards, not backwards. It advocates embracing companies with bright futures – companies that are reinvesting appropriately in their business and paying lower but sustainable dividends. Our belief is that this approach
Yield curves may steepen as growth recovers. EM growth recovered during the second half of last year, but most countries’ gross domestic product (GDP) remains below 2019 levels. The recovery has been led by exports and industrial production, which were
Value stocks have rallied, but we see the potential for more upside. The rotation from growth to value stocks accelerated in the first quarter of 2021. However, with valuations arguably reaching elevated levels in some areas, questions have emerged about
Equity Outlook: The simple reflation trades – value versus growth, cyclicals versus defensives, small caps versus large caps – that had performed well following the news of positive vaccine trial results last November reversed in April (see Exhibit 1). The
Market weekly: Being open to an inclusive growth approach goes hand in hand with a focus on long-term performance and contributes to a better climate for doing business and investment. As investment specialist Ramon Esteruelas and ESG research analyst Delphine
Companies focused on inclusive growth could stand to benefit in the long run. Investment specialist Ramon Esteruelas and environmental, social and governance (ESG) research analyst Delphine Riou explain why and how investors can target this theme. This theme fits in
First, we look at a recent publication from GMO named “The duration of value and growth”. Here they look at the comparison between bond duration and value and growth. The advancement of the coronavirus in the market has reinforced the idea that value stocks are ‘short duration’. This means that whenever bond yields rise …
The value stocks in the large‑cap Russell 1000 Index have outperformed their growth counterparts in recent months, but this near‑term regime shift does not dim our conviction in high‑quality companies that we believe can compound in value over the …
Over the last few weeks, we have seen a rise in bond yields alongside an outperformance in global value stocks relative to growth stocks. While we at GMO have certainly been happy to see some recovery in value stocks (and we are confident that this recovery has much further to run), the moves have only reinforced a narrative that has been gaining ground in …
We have seen an exceptionally sharp pickup in growth expectations, centered on the United States. Economists have adopted a narrative of a rapid fiscally fueled expansion, which supports a strong rebound in corporate earnings. Some of the drivers are global in nature, such as the continued rollout of vaccines that appear to be having the desired effect …
The rotation towards value is a key theme of our 2021 investment outlook. As the US economy moves towards reopening and a return to normalcy, we expect an overly accommodative Federal Reserve (Fed) to let the economy ‘run hot’ in
Webinar – Inclusive Growth – paving the way forward BNP Paribas Asset Management is delighted to invite you to join us for the next session in our virtual event series. On 25 March, our experts will be focusing on the
At the end of the global financial crisis in 2009 we saw a sugar rush within markets, specifically for a couple of quarters from March that year where economy-sensitive stocks performed very well. This is being mimicked somewhat today. When
T. Rowe Price Insights on Global Equities Global equities have advanced as investors have weighed the worsening coronavirus pandemic against hopes of a potential coronavirus vaccine. As sentiment rises, however, we believe it makes sense to be prudent in terms
Nu de presidentsverkiezingen in de VS naderen, wegen de markten de kansen af van een Democratische dan wel Republikeinse overwinning en wat de impact hiervan zal zijn op de aandelenmarkt. Sinds 1960 kent de S&P 500® Index in 80% van
Our key conclusions include the following: We believe there is a value premium driven by market participant behavior and that, despite all the headlines, value investing is not dead. But not all value is “cheap” (and not all growth is
Growth stocks have continued to outpace value stocks in the recent market volatility Quality Growth, a subset of the growth universe, has shown relative resilience in this selloff Experienced management teams, robust balance sheets, high return on capital and strong
Style rotations, where investors switch one type of investment style for another, are nothing new. At some point during most investment cycles different styles – such as growth, quality and value – will outperform at different points as investors rotate
Webinar – New Economy Capital Group New Economy – designed to capture growth and innovation Capital Group’s New Economy strategy, launched in 1983, was designed to capture growth by investing in companies that can benefit from innovation, exploit new technologies
Fixed Income Perspectives The trajectory of global growth turned downward as governments scrambled to deal with the social and economic impacts of the COVID-19 pandemic. The …
The Covid-19 pandemic remains the only real theme driving markets, as investors look for clues as to what the ultimate impact of the crisis will be on economic growth, industrial sectors and asset prices. The jury is still out, with
Webinar – Emerging market debt: How will emerging market debt emerge from this crisis? With COVID-19 impacting markets and economies globally, EM debt is set to be impacted from the increased volatility. Join us to hear from Kirstie Spence, fixed
The swift and intense economic volatility caused by the Covid-19 crisis has left investors with something of a blind spot. Traditional business cycle analyses have no inputs for a global pandemic, making it hard to judge how to position portfolios
Webinar – Value’s Death may be Greatly Exaggerated Live Webinar – Value investing has been a painful experience for investors over the last decade. Today, the spread between growth and value is at historical highs. Is this time different? Is value
What is a sentiment crash? should i be concerned? Changes in stock prices are driven by new information, primarily through changes in fundamentals, and/or multiple expansion (e.g., changes in a firm’s the price-to-forward earnings ratio over a specified time period).
