Cyclical stocks and small caps US benefit most from a Fed cut
The stock market is going through turbulent times, especially within the large technology stocks segment. Nevertheless, a soft landing seems to be in the offing. Investors are already anticipating a possible rebound, especially among US cyclical stocks and smallcaps.
Economist's view: five lessons from 2021
The nice thing about the investment profession is that creativity is more important than striving for perfection. Striving for a perfect world runs the risk of chasing the market. By selecting investments in which all the good news is discounted, a portfolio is created that structurally lags behind the market.
JP Morgan fund increases short positions in equities
The exuberance in the equity markets is a little too much for the managers of JP Morgan’s €6 billion Global Macro Opportunities Fund. “This was the reason for the investors to increase the number of short positions in shares, via options on the S&P 500 and individual short positions in a few individual titles. We’ve reduced the risk”, said Nicola Rawlinson in an interview with Fondsnieuws, Investment Officer Luxembourg’s Dutch sister publication.
Two major concerns of multi-asset investors
Every day, Natixis IM’s head of multi asset James Beaumont and his team wonder how much higher the equity markets can go. Yet, according to him, the issue that is keeping multi asset investors awake at the moment is something else. What should they do with government bonds?
Southeast Asia Covid bargains
Equity markets in most emerging markets are lagging the US and Europe significantly this year. The reason for this is the stricter rules for listed companies in China and the continuing impact of the coronavirus. While the former is an ongoing source of uncertainty for investors, the latter creates buying opportunities, particularly in Southeast Asia.
Inflation no longer driving market corrections
BlackRock calls the new status quo in the global economy ‘New Nominal’. “The ’New Nominal’ is the situation in which higher inflation no longer causes sharply rising interest rates, and dangers for corrections in the stock markets are lower,” said Lukas Daalder, chief investment strategist at BlackRock, in an interview with Investment Officer Luxembourg’s sister publication, Fondsnieuws.nl. The reason is the 2021 Mid-year Outlook that was published last week.