All Asset allocation articles – Page 24
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In Credit - Life in the slow lane
Government bonds remain supported by evidence of a slowing in the global economy. This was reflected in the decline in Machine Tool Orders in Japan (See chart of the week), which were lower by 29% on an annual basis at the most recent reading. The US market outperformed last week with yields falling by 4bps for 10-year bonds.
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Chinese consumers: your country needs you
Consumption now accounts for over half China’s economy, but spending is decreasing
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How Airports Are Flying High: A Social Perspective
Holding airport bonds in our social strategies often raises questions. But aviation brings huge social and economic benefits, and is making great environmental strides
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Normalising economies may mean moderate returns
After 10 good years, the markets appear to be finally getting back to pre-crisis norms. Our analysis suggests that this normalisation may result in investment returns becoming much more modest than they have been over the years since the financial crisis, when extraordinarily loose monetary policy has boosted asset prices.
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Global equities: identifying tomorrow’s ‘superstars’
After a bearish end to 2018, financial market participants are preoccupied with the question of whether a global downturn is imminent. Yet they should be asking a different question: have they accounted for the way that technology and other factors are transforming business models?
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Asian Equities: US-China relationship to remain critical
Asia Pacific ex Japan markets started the year well, holding on to gains that were chalked in the strong rally in 2017. But by mid-year, signs of slowing economic growth surfaced, primarily induced by US-China trade tensions, leading to a sharp market correction, particularly for Chinese equities.
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A tale of two worlds: a robust business cycle in the US and a draining of liquidity in the rest of the world
After President Trump signed the ‘Tax Cuts and Jobs Act’ into law on 22 December 2017, we expected corporate earnings growth to be strong in 2018. In fact, it has been far stronger, as the direct effect of the tax cut on corporate earnings was further magnified by the acceleration in economic growth.
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Fixation on Brexit misses the bigger picture
Reflecting on 2018, global equity markets have lurched from optimism to pessimism. At the beginning of the year there was a complacent belief in synchronised global growth. But cut to the fourth quarter and many strategists are speculating whether the United States might soon enter a recession and how Chinese economic growth is slowing as they try to get a grip of their own excessive debt levels.
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Finding opportunity in Europe’s volatility
Looking back at 2018, it was a year when European corporate earnings continued to grow, while market volatility was surprisingly high. The volatility was a result of both political noise and the fear of a slowdown in global growth.
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It’s all eyes on trade for 2019
There has been a significant de-rating of equities over what has been a disappointing 2018.
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Redefining the cycle – 2019 CIO outlook
We have already had the longest bull market in history and a very long upswing, so this cycle is clearly nearing its end, but we do not believe the end is imminent – rather the cycle is being extended and redefined by a combination of structural factors leading to low interest rates, low inflation and ongoing moderate growth.
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Market Perspectives: When it rains, it pours
When it rains, it pours. Already the Flash crash in February was severe; then October saw the most severe monthly equity sell-off (MSCI World) since 2012. A further drawdown by mid November aggravated the year-to-date losses. Tech stocks entered bear market territory.
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Global Perspectives: 2019 Outlook
The new year brings new challenges and new opportunities for investors. The investment professionals of Principal Global Investors look at the regional macroeconomic outlooks and examine the major asset classes.
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Quarterly Allocation Views: Taking Solace from the Longer Outlook
Every year, when we publish longer-term capital market expectations, it is always interesting to reflect on how our views evolve over different time horizons. Today, with increased market volatility, divergent economic performance and looming trade wars, can we take solace in a constructive longer-term outlook?
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Strategic Relative Value: Q4 2018
The investment climate is becoming more challenging as previous easy monetary conditions are being reversed. Risk/return expectations need to be re-evaluated, but investment opportunities still exist around the world.
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US mid-term elections – an investor’s view
A Q&A with the Head of US Equities, EMEA, which discusses the significance of the forthcoming US mid-terms, Nadia’s outlook for the US economy and market, and how our portfolios are positioned in light of this.
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Disruptive technologies challenge traditional infrastructure approach
Traditional infrastructure investments are being challenged by the pace of innovation, and technology and disruption will likely create opportunities across all core infrastructure asset types. So a highly flexible approach is required to respond to this.
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Q&A – the credit cycle and interest rates
The Head of Investment Grade Credit, EMEA, gives his thoughts on where we are in the credit cycle, what will happen to interest rates, and his expectations for the future and how President Trump might influence this.
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Competitive advantage takes centre stage
Technology firms previously enjoyed three to five years of competitive advantage, but today’s sector is a different beast.
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Shopping for high-quality industrial property
After a year of strong returns, industrial property is in vogue with investors.