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
The following article originally appeared in the Financial Times.
In the past, central banks set the price of money using interest rates. In the future, it seems, they will be giving it away. This week the US Federal Reserve… Read the article
Central banks are at a crossroads, and if they carry on, maybe a dead-end. The good news, though, is twofold: central bankers recognise the need to reassess their frameworks and they are coming at it from a point of strength:… Read the article
In spite of trade-war driven volatility in May, market behaviour in many major regions during the second quarter was characterised by positive returns from both equities and bonds (with Japanese and other Asian equity weakness a notable exception):
We’ve discussed the theme of correlated bond and equity returns… Read the article
Sometimes the market is seen as an almost mystical force, sending signals that give us special insights about the future if only we can decipher what it’s ‘telling us.’
Other times it’s characterised as a naïve and careless basket case, subject to the lack of judgement and greed of… Read the article
It is now three years since Britain voted to leave the EU (in case anyone needed reminding). We are all aware of never-ending twists and turns in this saga, even if we are none the wiser as to the final conclusion. But, we ask, with the benefit of hindsight, how… Read the article
Last month Joe Wiggins noted that fund managers frequently claim to make money by exploiting the ‘behavioural biases of other investors,’ but are often unable to explain how they avoid falling victim to these biases themselves.
Now it could be that ‘exploiting behavioural bias’ is simply… Read the article
The quest for uncorrelated returns can be an expensive pursuit, especially in terms of opportunity cost.
The rise and fall in popularity of absolute return funds is a case in point. For years, the Targeted Absolute Return sector was among the most popular among UK and European fund buyers, but… Read the article
You may have seen charts like the one below before (possibly here or here) which suggest that investors and commentators find more to worry about than they really should:
This certainly seems to have been the case for bulk of… Read the article
As Theresa May remarked in her resignation speech, her successor will face the same challenge of finding consensus over Brexit within Parliament. So far Westminster has been able only to express what it doesn’t want, and has failed to coalesce around a way forward. The path ahead remains as uncertain… 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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