Capital Group

The last few months have seen a significant change in the macroeconomic environment and the market debate has shifted from “how many more rate hikes?”, to “when (and how aggressively) will central banks cut rates?”

Investors may be surprised to learn that the latest flashpoint for electric vehicle (EV) manufacturing is nowhere near the high-tech hubs of Silicon Valley or Shenzhen.

A daily diet of negative news can lead even the most experienced investors to lose conviction in their long-term investment plans.

As we embark on a new year, the challenges ahead are well defined.

What a difference a year makes. At the start of 2023, market pessimism was widespread, investors braced for a recession, and many expected another down year in stocks. Instead … we had surprises.

Under the weight of elevated inflation and high interest rates, the world’s major economies are diverging.

Despite interest rates being hiked to their highest level since the mid-2000s and a mini crisis in the US banking sector, a recession has, so far, been avoided.

One question we have heard at virtually every client meeting over many years is, “Are you concerned that US government debt is too high?”

The global investment grade corporate bond universe is very diverse. This diversity provides fertile ground for a well-resourced asset manager to consistently add value to sector returns over a market cycle.

To say this has been an interesting year in financial markets is an understatement.