Accelerating inflation, the start of another Federal Reserve rate-hiking cycle and Russia’s invasion of Ukraine have triggered a rise in global bond yields and a widening of credit spreads. Although the economic outlook has deteriorated, European banks are entering the slowdown with healthy capital buffers and are in a position to benefit from the rising rates environment. … [Read more...] about Positive outlook for European bank bonds
The fallout from the Ukraine war has led many investors to seek a greater understanding of ETF vehicles. If there were a chapter in ETF history that highlighted the need for a liquidity sleeve in investment portfolios, I think the events of recent years should certainly be included. Indeed, it is this liquidity that so many investors are now embracing, in addition to the … [Read more...] about Highlighting ETF liquidity during times of stress
We have all seen the world change in the past few months, and there is plenty being written about what it means and what happens next. In this era of 24-hour newsflow the short term always receives a lot of attention, but it is the medium-to-long term which dynamics which will have more profound implications for investors. It pays to prioritise the big strategic decisions … [Read more...] about Is your equity portfolio ready for a turn in the investment cycle?
Global shares have had a difficult few weeks and have fallen particular steeply since the US Federal Reserve (Fed) raised interest rates by 50 basis points (0.50%) on 4 May. For once, the US is performing worse than average, with its high weighting in technology and growth stocks counting against it. As equity investors, one of our main sources of information about what’s … [Read more...] about What lies ahead for stock markets after recent falls?
Larry Fink, the CEO of Blackrock, declared in recent weeks that the covid driven experiences of the past couple of years now mean the ‘globalisation is now dead’. He points this out as an inevitable outcome of the supply and delivery problems that both companies and countries have experienced during this time. As regards energy and food, concerns have risen even further as a … [Read more...] about The times they are a-changin’