Unconventional monetary policy: Catch-22
Quantitative easing is far from finished as central banks realise procrastination will not halt deflationary forces.
Quantitative easing is far from finished as central banks realise procrastination will not halt deflationary forces.
An interesting paradox is becoming visible in Expert Investor’s investment sentiment data: while fund buyers’ appetite for risky assets is on the up, their macroeconomic outlook is going the other way.
Flatter global growth likely, but worries of recession are misguided.
The pendulum of investor sentiment has swung from overstated recession scare in January to more tempered acceptance of the reality that returns will be constrained by slower growth.
The biggest portfolio risk this year is not yet priced into the market, said Kevin Liem, chief investment officer at wealth management firm TTG in Hong Kong.
The firm believes “lower for longer” will apply to energy prices, inflation and interest rates over the next five years.
The Bank of Singapore has joined the chorus of analysts warning that China’s private sector credit-to-GDP ratio is now over 200%.
Credit markets have already rung the bell for the top of the cycle in a year that was always going to be challenging, said Peter Toogood of the Adviser Centre.
Investors should expect further bouts of volatility until question marks over global growth and the impact of China are resolved, said Stephanie Flanders, chief market strategist for Europe at JP Morgan Asset Management.
Investors may shift equities holdings back into fixed income in 2016 as bond yields increase, Julius Baer has said.
As we head into 2016 it seems wealth managers will be wrestling over whether to focus more on how to boost returns or how to avoid big losses.
With Indian Prime Minister Modi arriving in the UK today following a recent electoral setback in Bihar, the question for investors is how quickly can he push through much trumpeted reforms.