Please note the content on this website is for Investment Professionals only and should be shared responsibly. No other persons should rely on the information contained within this website.
US ten year Treasuries have delivered a zero real return to investors over the last five years, while the US equity market has increased by 87%.
This should not be a surprise. It makes sense for investors to pay up for lower volatility (even if this relationship does… Read the article
The last two weeks have seen a relatively sharp increase in developed market government bond yields, seemingly driven by a perceived change in tone from central banks.
The moves are actually relatively modest, merely bringing yields back to levels seen at the start of the year.
… Read the articleThe apparent lack of volatility in markets may have left some investors twiddling their thumbs- the passive acquisition of risk premia can sometimes be a dull world after all. To help you through until the next market episode, here are seven reading suggestions from M&G’s episode… Read the article
Political developments have dominated market commentary for much of the last two years. However, such commentary is often overly focused on short term considerations: trying to forecast short term price moves around elections, or considering which areas of the market will be the winners and losers from particular polices. In… Watch the video
The defining characteristic of US economic data since the financial crisis is not stagnation, but stability. We all look back on the Great Moderation with incredulity at the hubris of economists. But has reality morphed into the Greatest Moderation?
There was always a kernel of truth in the… Read the article
As a completely agnostic investor in a risk-free government bond, a sensible return expectation might be the yield on that bond.
The yield is indeed what you receive if you hold a bond to maturity. Any shorter term gains in excess of that starting yield are… Read the article
The Shiller price-to-earnings ratio (or ‘cyclically adjusted price-to-earnings ratio’) has become the poster child for bubble-hunters everywhere. Ever since Robert Shiller himself became associated with the dot.com boom and bust, investors have looked to the metric as an indicator of irrational exuberance in the markets.
So why is Shiller himself… Read the article
The recent shifts in political ideology around the world have been fought against a background of increased tensions over wage levels and a fear of job insecurity in the wake of both globalisation, and more recently, technological advances. These issues underpin much of the political discussion… Read the article
As if political uncertainty was in short supply, Theresa May’s decision to call an early General Election, seeking stability, has achieved the opposite.
The outcome of the election, while clearly a surprise relative to expectations just a few weeks ago, seems broadly consistent with the trend in opinion polls in… Read the article
While markets may have seemed uneventful of late, there has been a flurry of academic activity that gets to the very heart of whether it is possible to beat the market. Though dull and esoteric on the surface three papers and a new book, all released in the last three… Read the article
Please note the content on this website is for Investment Professionals only and should be shared responsibly. No other persons should rely on the information contained within this website.
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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