Portfolios combining bonds and equities have thrived in the 2000s and 2010s, as the structural decline in interest rates propelled bond and equity markets higher. With the investment landscape now changing, this traditional, static asset allocation approach to diversification may not survive the 2020s. Recalibrating the investment landscape The Covid pandemic has changed the … [Read more...] about Seeking diversification in a zero-rates world
European credit has not escaped the global waves of ‘fallen angels’ in the investment-grade market and defaults in the high-yield market. The question now, for both high-grade and high-yield investors, is whether we are over the worst of it. In both cases, indications are that the story has further to run. The outlook for fallen angels Globally, by the end of September … [Read more...] about More Fallen Angels Ahead in Europe?
Global equity markets remain enamored with technology giants despite seismic disruptions from the coronavirus. So far this year, market valuations for some industry titans have soared, albeit with some recent volatility. The same holds for a select few of Asia’s e-commerce and tech giants. Since COVID-19 has emerged, the pace of digitization has noticeably increased, with … [Read more...] about Small but mighty
At the start of 2020, prior to the outbreak of Covid-19, we discussed how new and fast growing technologies such as artificial intelligence (AI), the internet of things (IoT), big data and blockchain are set to drive the disruptive power of technology even more, intensifying the polarisation between winners and losers. In our view, these technologies, combined with the network … [Read more...] about Digital 4.0: The next wave of technology innovation
The boundless appetite for resources, fueled by linear production and consumption patterns, is exceeding the planet’s regenerative capacity. Regulatory actions for higher circularity are amplified by consumers opting for circular products. With ongoing innovations and technological advancements, prospects for de-materialization look better than ever. But how can investors … [Read more...] about Investing in the circular economy