Investing

The chart making waves on social media isn’t getting attention without reason. It suggests that the real turmoil in the US labour market kicks in only after the yield curve has been inverted for over a year. Investors might be celebrating a soft landing prematurely.

In 1973, during Yom Kippur, Israel found itself under siege from countries including Syria, Egypt, Morocco, Iraq, Algeria, Kuwait, and Saudi Arabia. This conflict led to the first oil crisis, causing oil prices to triple in a short span, marking a significant shift in Western economic growth post-World War II.

Investors often overlook the growth potential of companies exposed to megatrends like the energy transition and artificial intelligence. Those who discern the transformative potential early and stay invested might reap significant returns in the next decade.

A recent chart from UBS has caught my attention. It indicates a surprising reluctance among Americans to spend during the upcoming holiday season, especially when compared to their willingness in July.

EU-domiciled Exchange Traded Funds, or ETFs, are growing at twice the speed of traditional Ucits funds, demonstrating continued appetite among investors for passive and low cost investment vehicles, a deep dive by PwC Luxembourg shows. Meanwhile, Denmark has emerged as Europe’s top target market for ETF distribution.

Despite growing optimism about investment conditions, the latest Goldman Sachs Asset Management survey indicates that a majority of investors still view private equity as too expensive.

Inflation concerns continue to shape market predictions. “For three months, we witnessed impressive figures, but then oil prices spiked unexpectedly. This isn’t a fleeting issue,” commented Mary Pieterse-Bloem, chief investment officer of Rabobank, in the CIO Debate at Investment Officer’s 16th Fondsevent conference in the Netherlands on Monday.

The ambition of the financial sector to further democratise private markets is not yet convincingly reflected in practice.

Federal Reserve Chairman Jerome Powell’s recent announcement that U.S. interest rates will hold steady at 5.25% to 5.5% has sparked a debate among investment professionals about what would be best for asset owners: a “soft landing” or a full-blown recession?

Panel discussions at Alfi’s Global Distribution Conference on Wednesday exposed differing viewpoints on the definition of a retail investor, casting a shadow over prospects for success for the next generation of European Long-Term Investment Funds, or Eltifs.