Making sense of current equity and bond pricing

Making sense of current equity and bond pricing

Jihan Diolosa, Associate Director in the UK Institutional team poses questions to our lead multi-asset portfolio managers based on some of the key issues keeping investors awake at night.   Current equity and bond pricing   Despite equity prices being high, it’s not obvious whether the bull market will continue or if some sort of

Currency hedging can prove profitable in a low return environment.

Life in a low-return world: To hedge or not to hedge?

Currency Strategist Van Luu shows how thoughtful management of currency risks and opportunities can help investors reach their objectives, despite the low-return environment.   Russell Investments believe we will see low returns over the next seven to ten years. Pension funds, endowments and individuals may have to adapt their behaviour and strategies or else risk

One week after the UK Election: Scenarios for sterling and Brexit

One week after the UK Election: Scenarios for sterling and Brexit

Theresa May has pushed forward with EU negotiations despite it being widely expected that she will not last a full term in office The pound could fall even lower in the short-term, but we think that the downside is contained A ‘softer’ Brexit may be positive for sterling In the event that Britain leaves the

Senior US Investment Strategist Paul Eitelman analyses the latest Federal Reserve announcement on interest rate hikes.

Fed hikes rates into mediocrity

The US Federal Reserve raised interest rates for the second time this year Lacklustre real US GDP growth indicates that the US economy is continuing to underperform expectations The global cycle, the US unemployment rate and accommodative financial conditions warrant today’s hike We don’t believe the fundamentals are strong enough to warrant another hike this

Jun 15, 2017 Categories: Market Updates
UK Elections - Brexit

UK Election: A hung parliament

The lack of a Conservative majority realises a hung parliament. The impact of this on Brexit is hard to predict Markets are likely to move into ‘risk-off’ mode seeing a decline in sterling, UK equites and gilts Investors should prepare for increased market volatility as we expect a chaotic and difficult time for Westminster Russell

Page Title Unconstrained Bonds – taste the secret sauce

Unconstrained Bonds – taste the secret sauce

Unconstrained fixed income has become a popular strategy. By choosing investments that are free from benchmark constraints and that allow the managers wide-ranging discretion, investors aim to achieve consistent positive performance irrespective of a potential turn in the interest rate cycle. But in a world of low prospective returns, a successful unconstrained bond strategy needs

May 31, 2017 Categories: Investment, Investment Strategy, Markets

The economic outlook according to stocks and bonds: will it be rosy or will it be bleak?

With buoyant equity markets on the one hand and cautious bond markets on the other, Russell Investments’ strategist Van Luu analyses which asset class is right, if any. Asset class divergence We have reached a point where equity and bond markets are diverging significantly. Global equity markets trade close to all-time highs while bond markets

Is the stock-bond correlation positive or negative?

Is the stock-bond correlation positive or negative?

Some periods of history might point to the conclusion that the correlation between the returns on stocks and bonds is positive, others that it is negative. These variations can be a signal of fundamental change in the broader market environment. Phase transitions The behaviour of investment markets is not fixed. There are periods, for example,

May 18, 2017 Categories: Markets
Global Fixed Income Survey

Fixed Income Survey Results: Spotlight on Local EMD, Rates & Credit Spreads

Last October we initiated a quarterly global fixed income survey using responses from leading bond and currency managers highlighted by our research process. This quarter’s survey included 165 responses from managers with specialisms ranging across Global Rates, Global Investment Grade Credit, Global Leveraged Credit, Securitised, US Municipal Bonds, Active Currency, and Emerging Markets (EM) including

May 12, 2017 Categories: Investment, Investment Strategy, Markets
French Election

Macron wins French Presidential election

In line with the polls, Emmanuel Macron cruised to an easy victory in the second round of the French presidential election, taking 66% of the vote. Macron’s party, En Marche! is also doing well in the polls for the June parliamentary elections1. Which may mean that Macron’s power to implement reforms could be bigger than

May 8, 2017 Categories: Market Updates, Markets

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