- Global Investment Views - August 2019
Global Investment Views - August 2019
Friday 26 July 2019
Research / Market
Testing new records
Financial markets have been enjoying a record-breaking run of late. The tide that lifted all boats was the new wave of ultra accommodative monetary policy, at this stage announced but not yet delivered. The conviction that central banks (CBs) will step in again to avoid an excessive deterioration of the economic outlook, in the absence of any material sign of inflation, was the main driver of the recent rally. The overall narrative in the market is that the glass is half full. The economic cycle will be extended by CBs, interest rates will remain lower for longer and risk assets will remain well supported: credit and EM by the hunt for yield, and equities by the repositioning of investors that are late joining the party. This is all taking place against a backdrop where overall, valuations are less compelling than they were at the beginning of the year, although are not too stretched. All good then?
Blue Convictions - SPECIAL COVID-19 ep#3 - A game of cycles
The world is now entirely racing for time against the Covid-19.Three cycles are under watch: the pandemic cycle, the financial cycle and the real economy cycle.
Blue Convictions - SPECIAL COVID-19 ep#4 - Some light in the fixed income space
Volatility will remain for a while in the equity and fixed income worlds. However, thanks to the action and coordination of central banks, massive debt issuance in Europe and in the US eased trading for both buying and selling sides.
Blue Convictions - SPECIAL COVID-19 ep#5 - The USA: opportunities in a market expecting a deep recession
The pandemic hit the USA, now the new epicentre of the storm. Fiscal and monetary stimulus came fast and in huge volumes to support the economy.