While bonds have become the new stocks for many investors, ‘Taper Tantrum II’ remains a real threat for asset markets this autumn, warned Bank of America Merrill Lynch ahead of Fed chair Janet Yellen’s Jackson Hole speech today.
Seeing a thematic rotation below markets’ calm surface, NN Investment Partners is increasing its exposure to cyclical stocks by upgrading industrials and materials and downgrading healthcare.
Pictet Asset Management has weighted its multi-asset portfolios more towards cyclical equities as a respite in dollar strengthening supports earnings.
With government bond yields in developed markets at record lows, asset managers are more pessimistic than ever about return prospects for the asset class.
Kames Capital’s Phil Milburn has returned to the asset manager as its head of fixed income investment strategy.
The firm’s multi-asset group is upping exposure to emerging Asia equities at the expense of their UK counterparts.
Sustainable yield remains a key investment theme, and the sustainability of that yield is becoming more significant, according to Standard Life Investments.
With the risk/reward profile of UK gilts already skewed to the downside further yield falls would be undesirable, according to Kames Capital.
The split among the members of the Federal Open Market Committee over the last rate decision revealed by the meeting minutes, and the dovish tone, presents some fresh food for thought for investors.
The BNP Paribas multi-asset team tactic, in the current febrile environment, is to tread carefully in its search for alpha and let the fallout from Brexit, modest global growth and doubts over monetary policy play out.
With the long-term bond bull market still in play, investors continue to enjoy the flex appeal of fixed income’s most popular fund sector. However, it is not always the long-term top performers that fare best during the big sell-offs
Growing uncertainty in developed markets and a flight to safe haven assets post-Brexit have skewed valuations, according to an increasing number of industry professionals polled by the CFA Society of the UK.
