The world is a profoundly surprising place. That was the case in 2019 – few people predicted a vintage year for both bonds and equities, with the latter outperforming despite no earnings growth. Already in 2020, we have been taken by surprise by events involving the US and Iran. What… Read the article
A version of this article originally appeared in the Financial Times last week.
There is a widespread assumption that the European Central Bank — like other major central banks — has reached the limits of monetary policy, and that the… Read the article
In a 1958 interview with CBS radio, Stanley Kubrick said the following about the impact of television on Hollywood:
“I think that despite the unhappy financial upheaval it has caused in the movie industry, it has also provided a very… Read the article
The cliched response to the UK election result was that Brexit uncertainty had been removed; this was what explained the immediate rally in Sterling and UK stocks, and a sell-off in Gilts.
But only a couple of days later we found ourselves straight back in a world of volatility:
Last week I wrote about the apparent confusion caused in some quarters by strong stock returns against a backdrop of weak macro and profits data. I argued that two important reasons behind this were the removal of rate pressure, and the unwind of the episode at the end of… Read the article
Yesterday the US equity market (S&P 500) reached all-time highs. Indeed so far in 2019, many major equity markets are up between 10% and 20%.
This has caused much confusion; it runs contrary to what seems to be a very negative backdrop for the global economy, with warnings… Read the article
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In some ways, the third quarter of 2019 was a microcosm of the environment since the financial crisis.
Rapid declines in equity markets turned out to be a buying opportunity given a relatively rapid rebound:
While bond yields, despite threatening to sell-off from their lows, didn’t… Read the article
The market often seems like a London commuter with an umbrella and a mobile phone: failing to look ahead and causing damage to bystanders by overreacting to near term threats.
But there has certainly not been any overreaction when it comes to potential inflation. The recent drone attacks on Arabian… Read the article
For those of us who weren’t around during the dot.com boom and bust, this period can seem like an historical oddity. It’s often used as a classic example of the foolishness of human beings and the ability of markets to make blindingly obvious mistakes.
From the vantage point of hindsight… Read the article
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OKWelcome to the M&G Multi Asset Team’s Allocation blog, previously known as the Episode blog. We have changed the name of our blog to resonate better with our readers in Europe, however, the content and purpose of the blog has not changed. The Allocation blog continues to aim to provide unique market perspectives from our dedicated team of experienced asset allocators.
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