We turn cautious on global equities on a tactical and medium-term view, as US stocks flirt with record highs even though risks to the world economy are mounting.
Nervy investors are eyeing top-heavy market-cap indices with suspicion. But how can they use factors to navigate the trade-off between diversification and concentration risk?
We stay bullish on risk assets as we believe the medium term outlook for markets has actually improved
Can environmental, social and governance concerns (ESG) fit within a factor-based portfolio? In this article, we tackle two issues: the inconsistency in methodologies for ESG scoring, and ways to integrate ESG considerations into factor portfolios.
Unfortunately for markets, our bearish outlook for 2018 came to pass. For 2019, the key question is how tightening fnancial conditions will impact heavily indebted borrowers – and whether this raises the risk of recession.
The American midterm elections are approaching and the crystal ball gazing has begun. Here’s what investors should consider regardless of whether the US votes for a ‘distilled Donald’, the ‘Democratic double’ or a ‘divided democracy’.
Whether you’re looking at equities, bond yields, currencies or economic strength, it’s the US that’s been leading the charge. Is this likely to continue?
Developments in trade tensions, emerging markets and European politics may determine the trajectory of markets over the coming months.
Investors have been buffeted by a large number of negative headlines in 2018. We remain of the view that tightening global liquidity conditions are likely to exacerbate market volatility.
A brief discussion of some of the behavioural biases that can explain factor premia.
What should investors make of rising yields, higher volatility and wider credit spreads?
The ‘one share, one vote’ standard has been in place since 1940 but the number of companies with unequal voting rights is on the rise.
Can cyclical tailwinds paper over the structural cracks? And what’s the outlook for global trade, China and equity investors?
Many investors combine concerns over overcrowding in factors with capacity fears. We want to help separate these terms and provide some clarity over the current state of factors.
While the financial reforms pose risks to trading, we can take heart from the benefits of greater transparency, says Ed Wicks, Head of Trading at LGIM.
Get ready for a shift in UK market leadership, says Stephen Message, manager of the L&G UK Equity Income Fund.
Are market expectations too good to be true?
Looking into 2018, US policies will remain one of the biggest focal points for EM assets, even if it has felt like ‘waiting for Godot’.
The consequences of monetary tightening will define the 2018 investment landscape.
We expect another strong year for growth with the global economy firing on almost all cylinders. But the market has priced in this optimism, implying greater vulnerability for disappointment. We expect the low interest rate environment to continue into 2018. While interest rates can drift up, we do not think this is the beginning of the end for the bond markets.
In this quarterly outlook we outline our asset allocation views and address three key questions on equities, US monetarypolicy and emerging markets.
It’s tempting to think otherwise, but not all emerging market debt is created equal. In this piece we examine the public, private and external debt profiles of individual emerging markets.
Global credit markets have shown remarkable resilience over the past year.
In a surprising result, the general election has ended in a hung parliament. At the time of writing, the Conservative party has won approximately 318 seats.
Investors currently buying UK government bonds are doing so in the knowledge that they are accepting a yield which is lower than the rate of inflation, i.e. the real yield.
In this quarterly outlook we outline our asset allocation views and address four key questions on wages, sterling, trade and rates.
In a largely anticipated result, Emmanuel Macron has won the French presidential election.
A rising China creates the potential for
tension between itself and the leading
world superpower, the United States.
Investors should pay attention to the
shifting of global power structures.
The global risk asset rally continued in early 2017, with emerging market investments the star performers.