Market Insights

We stay bullish on risk assets as we believe the medium term outlook for markets has actually improved

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 global risk asset rally continued in early 2017, with emerging market investments the star performers.

In our last quarterly outlook, we flagged our cautious posture on risk assets, taken due to a number of smouldering risks on the horizon. One risk we did not highlight, however, was that a pandemic would break out, causing untold human suffering and economic damage.

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.

"We are publicising the global corporate leaders and laggards on climate change."

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’.

Global credit markets have shown remarkable resilience over the past year.

In a largely anticipated result, Emmanuel Macron has won the French presidential election.

Monetary support is being tapered despite significant risks. Pressure is building steadily and we think that recent resilience is going to be tested.