Living your best life, if we understand the parlance of our times, is to say live in the moment. This seems like a reasonable strategy for short-term enjoyment, but a fairly mediocre life plan. That approach appears a reasonable analog
Good Tidings for Investors Heading into Year-End Global equities continued their climb, considerably outperforming bonds through November and the first half of December. Within U.S. stocks, relative returns across the capitalization spectrum were fairly tight. Growth outperformed value but cyclical
In 2019, 10-year US Treasury bonds traded in a range of 1.46-2.78%, the fourth-widest range since 2010. In 2020, we think the 10-year Treasury may trade in a similar range, with additional volatility arising from many of the same factors
The year 2019 has given us plenty of fodder for commentary. The Federal Reserve changed its outlook materially, recession worries rose, and the trade war carried on. All the while, the economy has continued to perform admirably, with steady growth,
Convertible bond valuations and fundamentals remain attractive overall, making the asset class well prepared for a potentially trickier year ahead. As we close out a fruitful year for financial markets, it’s fair to say that 2020 will not start with
Corporate earnings expectations have continued to fade as the impact of a global growth slowdown and related trade frictions take hold at the company level. Trade tensions between the United States and China remain elevated though negotiations aimed at reaching
It’s not likely the conditions of 2019 will be repeated, where safehaven government bonds as well as higher risk fixed income assets performed well. We expect 2020 to be marked by a continuation of bifurcated risk appetites, in which many
October has been dominated by big political misses. But central banks have once again set the tone for capital markets, pushing them to new highs. October was all about talk of deals and crucial dead-lines. What happened? The deals got
Opportunities beneath the surface The divergence between different credit qualities widened over the third quarter, as investors gave the lower end a wide berth. Dispersion in spreads between higher and lower-quality credit increased over the quarter. Looking solely at the
Putnam – Fixed Income Outlook Global growth has cooled in 2019 as trade conflicts have taken a toll on international manufacturing, investments, and financial markets. Despite multiple headwinds, the likelihood of a recession — while rising — remains relatively low
Q4 2019 | Fixed Income Outlook Global growth has cooled in 2019 as trade conflicts have taken a toll on international manufacturing, investments, and financial markets. Despite multiple headwinds, the likelihood of a recession — while rising — remains relatively
Bad but not so bad news left the market in a limbo: equity markets were more or less flat in the month, treasury yields remained in the 1.5 / 1.8 range and credit spreads also remained within the trading range
Looking at the issuance performance so far this year, CEE countries have done a very good job. Several countries have already covered this year’s issuance plan and many others have also reached a high number. Slovakia seems to be lagging
Bond market performance in 2019 has been dominated by a theme of central banks pivoting towards easier policy. In particular, the US Federal Reserve has signalled potential interest rate cuts, marking a meaningful shift compared with the hiking cycle of
Labor Day weekend marked the functional end of a long, hot summer; the season ahead might be a little cooler for U.S. consumers and businesses. The U.S. administration stepped up tariffs on over $100 billion of Chinese imports of various
The Netherlands has set ambitious targets with regards to reducing carbon emissions and moving towards a large share of renewable energy. The aim is to achieve 16% of renewable energy share by 2023. This means more than doubling the current
Since the first surprise increase in tariffs by US President Trump at the beginning of May at the latest, the trade war has become the main driver of interest rate markets. There were fears over an escalation that could push
Below is an overview of the key macroeconomic developments we expect to help determine our overall risk budget and inform our bottom-up security selection process in the second half of 2019:
While record highs on the major equity indices make for good headlines, the year-to-date returns posted by several fixed income sectors are impressive in their own right. Fueled by the second quarter’s collapse in developed market rates, long U.S. corporates
View from the Bond Market Bond yields have plunged this summer. The cyclical slowdown and a wall of political worries has created a surge in demand for safe assets. Investors are trying to figure out what it all means. Will
Below is an overview of the key macroeconomic developments we expect to help determine our overall risk budget and inform our bottom-up security selection process in the second half of 2019: 1. Populism—Populism is the enemy of globalization, the pullback
Key points: Performance for inflation-linked bonds has been positive since the start of the year Compared to the current inflation rate, breakevens are trading at a depressed level Beyond oil prices, stabilisation in economic growth outlook could boost inflation
Gathering clouds over global economic growth have turned both the ECB and Fed more dovish. The ECB is preparing for more stimulus to the euro area economy unless the outlook improves, while Fed Chairman Powell hinted at preparedness for an
In April, we wrote about the US Federal Reserve’s (Fed) evolving thoughts on its policy making framework as it considers a shift to average inflation targeting. This new framework would allow the Fed to be patient while average inflation increases
In rough seas, the ship needs to stay the course Viewpoints – Why now could be the time to buy the dip in euro corporate bonds Equities – Investors flee to safety as the economic giants battle it out Focus
World leaders and captains of industry are gathering for the @wef in @Davos.
@hanswstegeman hopes they really hear the alarm bells toll this time and calls on them to start this one very important discussion: isn’t it time to fundamentally change our economic system?
Two good questions:
1- Has #passive #investing helped drive the mega-cap, FAANG-led, #outperformance over the last five years?
2- And has that led to potential advantages from #active #management at this point in time? -> http://bit.ly/2RIZbwn via @FTSERussell
