All Asset allocation articles – Page 26
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White papersA Triumvirate of Macro Mega-forces
Deglobalization, a shrinking working-age population and climate change are set to define the strategic investment outlook. Much is written on these topics individually, but their economic impact is most clear when they act in concert to imply the same directional outcome for macro variables.
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White papersEmerging Markets from the Asset Allocator’s View
We’re tactically cautious on developed-market equities with a broadly risk-off stance, but we have a relative preference for emerging-market (EM) stocks over a 6- to 12-month horizon. Valuations aren’t demanding, while muted investor sentiment and generally low EM allocations versus recent history could be strong tactical catalysts—especially in light of China’s reopening.
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White papers2023 Mid-Year Investment Perspectives
Financial markets have been surprisingly resilient this year, despite stubborn inflation, further rate hikes and bank failures. As we move into the second half of 2023, the impact of higher interest rates and the uncertain economic backdrop are likely to remain key concerns for investors.
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White papersMid-year outlook 2023: key convictions for H2 2023
“Markets are at a critical juncture as central banks are hitting the pause button after the fastest hiking cycle since the ‘80s. Quality is the compass for navigating this phase.”
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White papersDon’t Give Up on China
The post-COVID reopening has disappointed, but has that disappointment and the prospect of new policy stimulus created a relative value opportunity?
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White papers2020s vs 1970s: echoes, not a replay
”The many challenges that lie ahead will likely lead to high volatility in the global cycle, in terms of growth and inflation. To weather such an uncertain period a more dynamic asset allocation framework is needed.”
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White papersTactics and Strategy
We tend to think about diversifying across asset classes, sectors and regions, but diversifying across investment timeframes can add value, too.
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White papersNet Zero investing and its impact on a 60-40 allocation
Global warming and the Net Zero transition have far-reaching implications for investors. In particular, embracing a Net Zero path will impact investors’ asset allocation in two ways.
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White papersResolving the Puzzle
To make sense of today’s market conundrum, remember that things could have been worse than they are, and that investors are more defensive than they appear.
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White papersSix Current Challenges Facing Private Equity LPs
In the uncertain economic climate of 2023, limited partners may benefit from revisiting several important considerations when managing existing private equity portfolios and allocating capital.
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PodcastOuterblue Convictions – Global Investment Views: All eyes on the debt ceiling
Washington remains firmly in the spotlight this month as the US debt ceiling negotiations remain at a deadlock. While a deal is expected sooner or later, what damage will be done in the meantime, especially as the economy in the United States had already been expected to slow?
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White papersEOS Stewardship Report 2022
EOS at Federated Hermes has published its third UK Stewardship Report as a service provider, with insights into our cost of living engagements and our work with Climate Action 100+.
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White papersBlack Book: A Painful Epiphany
The shock of 2022 was that bonds didn’t diversify equity risk. The extreme positive correlation of that year might not persist, but we show that for most of the past 250 years, a slightly positive correlation has been the norm. While it’s hard to identify the consistent forces that have driven this relationship over such an extended period, both the level and volatility of inflation point to the stock-bond correlation remaining in a range from zero to slightly positive.
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White papersTaking a Time Out? The High Price of Idle Cash
Parking your fixed-income assets in cash may seem like a safe choice in today’s volatile investing environment, but it’s actually a risky proposition. Here are three reasons why sitting on the sidelines can be a dangerous game.
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White papersThe Role of Private Assets in Strategic Asset Allocation: a Macro Perspective
The appropriate weight of private assets in portfolios is arguably the key question for strategic asset allocation today. These investments were the fastest-growing share of many portfolios for the past decade: Will the abrupt change in investment regime and greater need for liquidity halt that increase?
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White papersAsset Allocation Committee Outlook: 2Q 2023
Despite equities holding up well so far in 2023, the Asset Allocation Committee remains cautious, anticipating volatility as we approach peaks in rates and inflation and troughs in economic growth and earnings.
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White papersWith High Yield, Shorter May Be Better for Insurers’ Yields…and Capital Efficiency
With yield curves inverted in many parts of the world, investors no longer need to increase interest-rate risk to bolster yields. Instead, they can achieve the same end with shorter-duration high-yield bonds. For insurance investors that have typically shied away from high yield, we think this landscape—and the regulatory treatment—present a compelling opportunity.
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White papersPotential Opportunities in the US Banking Sector
Despite the failure of a handful of banks in the US and one in Europe, our view is that 2023 will not present a financial crisis near the magnitude of the Global Financial Crisis (GFC) in 2008. The three failed US banks, Silvergate, Silicon Valley and Signature, had unique business models that proved to be meaningful weaknesses. They raised concerns about firms with close financial ties to small banks, particularly speculative technology and related stocks, such as cryptocurrencies, that unwound when they were caught in a bubble.
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White papersA rocky net zero pathway calls for a new approach to portfolios
There’s a growing global consensus on the urgent need to combat climate change. But governments’ uncoordinated reactions to energy price spikes in the past year showed that a successful and orderly transition to a greener economy is far from guaranteed.
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White papersTurning, Not Re-Turning
It makes sense to prepare for the turning point in this cycle—but not by returning to the winners from the last cycle.
