In August 2015, emerging market equities were in the midst of the most serious market correction since 2008. A year on, investors are more bullish than ever about the asset class. Is this radical change of mood justified?
The first half of 2016 was the first time investment has been the largest component of gold demand for two consecutive quarters. Should this leave gold bugs feeling vindicated or afraid?
Barcelona’s fund buyers had been bullish about European equities almost by default for the past four years. But political instability across Europe has dented their appetite. Global emerging market equities are their new darling.
Not the excessive fees they charge, but the rapid AuM-growth of hedge funds after the financial crisis is to blame for their disappointing performance. Unfavourable macro conditions also play their part.
Flows into United States equities exchange-trade products reached their highest level since December 2014 in July, according to data from BlackRock.
As headline risk rotates from Brexit to the US presidential election in November, research analysts are weighing in on what could happen.
Investors have again started looking at increasing their exposure to commodities this year. However, the asset class has delivered mixed results so far.
Asset managers have been too optimistic in their return forecasts for European and Japanese equities over the past 18 months or so. Despite having faced disappointing returns over the past year or so, they are not yet prepared to meaningfully lower their expectations.
The ultra-loose monetary policy pursued by central banks since the financial crisis has implied an unprecedented fall in discount rates, which has led to a massive front-loading of returns: not only for bonds, but also for equities. Does this mean you should take your profit now and sell?
The correlation between oil and US high yield markets broke down in July, indicative of a shift in the focus of the sector.
The outlook for emerging markets is becoming more stable as falls in currency, oil and other commodity prices – added to a soft landing for China – continue to ease, argues Tai Hui, chief market strategist Asia at JP Morgan Asset Management.
Not only fund flows are capricious when it comes to high-yield bonds. Investor sentiment towards the asset class also swings continuously, particularly on a country-by country- basis.
