Risk assets have delivered very strong performance in recent months, notwithstanding last week’s volatility. At the same time, global bonds have not meaningfully sold off in this otherwise risk-on environment.
Combining the broadest possible range of assets can help income-hungry investors take advantage of the merits of diversification and optimise the risk-return mix within their portfolio.
Accommodative central banks and strong investor demand continue to support global fixed income. How long can this positive environment endure and what could trigger a reversal in sentiment?
This should be a supportive environment for emerging market (EM) currencies, as we highlighted in our most recent investment quarterly. A slow start to the year does not alter our positive view.
With a phase one deal between the US and China now signed, market participants are watching economic data very closely to gauge the impact of the truce.
This weekly update provides a snapshot of changes in the economy and markets and their implications for investors.