Rathbones has said it continues to favour risk assets including an overweight to United States equities despite recent volatility, due to a belief that investors are overreacting to negative news headlines.
If the oil price recovers to above $50 there will be an “inflation problem”, according to head of fixed income at Kames David Roberts.
UK investor sentiment toward bonds is improving a new survey by the CFA society of the UK has revealed.
Flexible bond funds were many an investor’s favourite answer to the challenging yield environment. By being able to switch between different bond categories, a fund manager would be better equipped to hunt for the scarce yield available, was the idea. But it has lost its shine, and investors have started to abandon unconstrained bond funds.
The majority of fund buyers in the Basque country and in much of the rest of Europe expect another market correction this year. Fund managers at Expert Investor Spain, held in Bilbao last week, identified China and Brexit as the main possible triggers for this.
But oil price movements are no longer the key indicator of global economic development they once were, argues M&G.
Money has poured into high yield bond funds at a rare pace over the past month but is this a sound move based on merit, or a case of return-starved investors clutching at straws?
Nearly two thirds of advisers in the UK fear that poor market performance is the biggest hurdle they will face this year, according to a poll conducted by investment platform Cofunds.
More investors trust the media on investment matters than robo-advisers despite the rising numbers of start-ups and established companies entering the space, according to Legg Mason’s 2016 Global Investment Study.
Most investors remain underweight gilts, but could bonds still be about to enter a bubble?
“If you buy investment grade debt, it looks like the Fed will be in your corner,” said David Buckle, head of quantitative research at Fidelity.
Last Thursday was a big day for Draghi. After disappointing in December, he couldn’t afford to underwhelm markets again. And to be fair, he didn’t.
