How compelling is Brazil’s fixed income story?
Amid the political turmoil, Brazil has done well for fixed income investors, but questions remain around further volatility.
Amid the political turmoil, Brazil has done well for fixed income investors, but questions remain around further volatility.
Following the turbulence of the first quarter, Eoin Murray, head of the Hermes Investment Office, believes that markets continue to be at risk of price spikes and falls, with volatility and liquidity risk being particularly concerning.
As the month of May trundles into view investors will be thinking about the traditional summer-proofing of portfolios, but the shrewdest among them may see more opportunity than danger.
With May just around the corner, a closer look at the FTSE All-Share Index during the past 30 years show that the old trading adage “sell in May” is a myth, according to JP Morgan Asset Management global market strategist Alex Dryden.
Financial markets have undergone substantial changes as a result of regulatory shifts, but according to Pimco’s global head of portfolio risk management, William de Leon, much of the volatility currently in evidence has more to do with central-bank induced uncertainty than illiquidity.
Investors must adapt to a repeating market cycle of rising global growth fears, subsequent sell-off and rescue by ‘dovish’ central banks, said David Riley of BlueBay Asset Management.
Volatility is a word that seems to have strongly negative connotations whether you are talking about markets or somebody’s personality.
The risk of a serious devaluation of the renminbi is likely to continue to fuel market volatility, said Gary Greenberg, head of emerging markets at Hermes.
A quarter of advisers say they do not plan to allocate any investments to China over the next six months, according to research from Cofunds.
Architas is increasing its allocation to cash while maintaining an overweight allocation to alternative assets due to the volatility, said Caspar Rock, CIO at Architas.
It has been quite a start to the year in financial markets and the initial impulse many will have is to batten down the hatches and try to weatherproof portfolios.
Vanguard has launched its first range of active ETFs as it seeks to extend its presence in Europe into active funds.