The Weekly Brief (7 March 2016)Contributor Global Markets Insights Strategy Team
Global equities have regained a degree of composure in the last couple of weeks, rallying 9% since mid-February. Despite the recent recovery, investor sentiment remains fragile and many continue to hold safe-haven assets.
Gold, a traditional source of comfort in troubled times, is up 16% year to date which is its best start to a year since 1980. Global government bonds are also off to a strong start, up 3.0% in 2016; their strongest start to a year since 1993. The fact that investors are willing to invest into an asset class where over 25% of bonds have a negative yield—and therefore guarantee investors a nominal loss if held to maturity—shows that we are not out of the woods just yet.
Year to date performance for select asset classes
Source: FactSet, J.P. Morgan Asset Management. Government bonds: J.P. Morgan GBI index, Global equities: MSCI World. Data as of 3 March 2016.
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The value of investments and the income from them can fall as well as rise and investors may not get back the full amount invested. Past performance is not a guide to the future.