Inevitable measures to limit climate change will increasingly spell ‘carbon risk’ for investors; billions of dollars have already been wasted
This week, our chart focuses on the recent decline in oil prices and the impact on financial markets.
Nearly two and a half years after European Central Bank (ECB) President Mario Draghi gave his famous “whatever it takes” speech, markets are still waiting for him to “show us the money”.
November 2014 saw a number of significant economic events in Japan. As the repercussions of what is happening in Japan are likely to have consequences in financial markets around the globe we provide here a short overview of these events and our interpretation of them.
On the 28-29 October, the FOMC held their monthly meeting. Steven Friedman reviews the FOMC minutes.
The Great Financial Crisis has shone a light on the value of flexible portfolio management, which is capable of dynamically adjusting itself to the twists and turns of the market cycle.
Japan’s leader has called snap elections in a bid to give his Abenomics push for growth fresh momentum, but markets have greeted the gambit with caution
This time around, our Charts of the Week focus on the decline in real interest rates, which have this year reached remarkably low levels. It’s a trend that naturally begs the question “why?”
The Bank of Japan stepped up to the plate and unexpectedly raised its pro-growth and pro-inflation asset buying, boosting local stocks and sapping the yen.
What is the FOMC view on the US outlook? Its concern over downside inflation risks is limited. Dollar gains and cheaper commodities allow it to be patient in raising rates
The narrow re-election of President Dilma Rousseff was followed three days later by a surprise rate hike by the Brazilian central bank. Financial markets now await a clearer sense of policy direction which upcoming policy declarations and cabinet nominations should provide.
The week of 13-17 October saw a marked rise in volatility across financial markets, price declines on a wide range of risk assets and investor flight into safe havens such as US Treasuries and German bunds.
The recent cheapening of commodities could benefit India – a net commodity importer – as it offsets inflationary pressures, reduces its current account and fiscal deficits and supports growth.
Investors tend to give too much attention to short-term relative performance figures. As a solution to this, the amLeague organises a paper trading game where managers play as if they were managing a real portfolio.
The constraints of the zero lower bound means developed economies may be confronted with the prospect of a future of chronically weak demand and slow economic growth
A small bump in the road has a negligible impact when taken at slow speed. The story is different when one is speeding down the highway. The same applies in financial markets.
The ECB’s messages are clear: inflation will stay low and below its policy objective for quite some time; policy rates will stay low for years to come; if need be the ECB can do more but let’s see first how this works.
Comforting economic news and low levels of the ‘fear gauges’ in markets reflect a peaceful environment, yet investors feel unease. This is healthy and should prolong the bull market.