In this article we discuss whether Europe’s economic momentum can continue and how will tighter monetary policy affect markets. Supportive Economic Backdrop Economic growth has improved and forward looking indicators remain positive. The economic expansion we’re seeing in Europe can continue. The key reason why, is that corporate management teams are now incentivised to … [Read more...] about Where to next for markets? As Europe moves from recovery to expansion.
Traditional fixed income markets face a number of challenges over the coming year. we highlight five reasons to be fearful for the bond market. Four of these relate to worries about the potential returns from the highest quality bonds in the developed world, The final one is the fact a competitor asset class appears to be offering superior returns – again. Inflation and … [Read more...] about Five reasons to be fearful for the bond market
Cryptocurrencies have dominated the financial headlines in the last few months, initially with jaw dropping gains followed more recently by rollercoaster trading. Jamie Dimon, CEO of JP Morgan and Warren Buffet have both cast their doubts about the longer term sustainability of Bitcoin, Ripple and others. In truth, cryptocurrencies have a long way to go before being considered … [Read more...] about FANG OR FAAAS: Driving Equity Markets to New Highs
Here are two macro themes which we believe will influence markets in 2018. Theme 1. Goldilocks gives way to reflation As 2018 begins, the activity picture remains strong. Business is confident and leading indicators signal robust growth ahead (chart 1). Chart 1: Global activity indicator remains robust We upgraded our global growth forecasts in November, but … [Read more...] about Big Macro Themes for 2018
Emerging markets such as China, Taiwan, Brazil and South Africa are leading the way in innovative thinking, particularly in the technology sector. In fact, emerging markets companies are leading the charge in all sorts of hardware and software developments: from the components that make the phones in your pocket to the camera technology that will allow us to use driverless … [Read more...] about How emerging market opportunities are being transformed by technology