Market Matters: April 2021
The risk rally continued in April with broad-based gains across most asset classes.
Credit/Fixed Income
Rising Rates and the Implications for Fixed Income
In this paper, we analyze the drivers behind the recent rise in yields and compare the current bond sell-off to major bond sell-offs of the past to assess whether the rise in yields can continue and the implications for fixed income.
US Manager Universe Statistics: First Quarter 2021
This publication presents manager performance for 37 asset classes and substrategies, showing the median, mean, and key percentiles of return. Relevant indexes for each asset class are also included to provide market context.
Decades of Data: Emerging Markets 1987–2020
The 2020 Emerging Markets edition of our annual report on the history of financial markets provides context for the range of returns investors can expect from equities, bonds, and cash; reveals the importance of various components of equity returns; examines the evidence for equity mean reversion; and reviews the relationship between initial valuations and subsequent returns for equities and bonds. It also analyzes the historic economic declines and sharp asset price movements that resulted from the COVID-19 pandemic in 2020.
Market Matters: March 2021
Global equity markets advanced in first quarter, as developed markets equities topped emerging markets peers.
Decades of Data: Europe ex UK 1900–2020
The 2020 Europe ex UK edition of our annual report on the history of financial markets provides context for the range of returns investors can expect from equities, bonds, and cash; reveals the importance of various components of equity returns; examines the evidence for equity mean reversion; and reviews the relationship between initial valuations and subsequent returns for equities and bonds. It also analyzes the historic economic declines and sharp asset price movements that resulted from the COVID-19 pandemic in 2020.
Decades of Data: United Kingdom 1900–2020
The 2020 UK edition of our annual report on the history of financial markets provides context for the range of returns investors can expect from equities, bonds, and cash; reveals the importance of various components of equity returns; examines the evidence for equity mean reversion; and reviews the relationship between initial valuations and subsequent returns for equities and bonds. It also analyzes the historic economic declines and sharp asset price movements that resulted from the COVID-19 pandemic in 2020.
Decades of Data: United States 1900–2020
The 2020 US edition of our annual report on the history of financial markets provides context for the range of returns investors can expect from equities, bonds, and cash; reveals the importance of various components of equity returns; examines the evidence for equity mean reversion; and reviews the relationship between initial valuations and subsequent returns for equities and bonds. It also analyzes the historic economic declines and sharp asset price movements that resulted from the COVID-19 pandemic in 2020.
Market Matters: February 2021
Risk assets rallied in February as global vaccination efforts progressed and economic momentum strengthened. However, the rally stalled in the latter half of the month amid concerns about a resurgence in inflation. Value stocks trounced growth. Small caps outperformed large caps for the sixth consecutive month. Sovereign bond prices declined amid sharply rising yields, while high-yield bonds advanced and bested investment-grade equivalents. Real assets mostly gained; oil prices reached their highest levels in more than a year, but gold declined at its fastest monthly rate since 2016. Among major currencies, UK sterling advanced, whereas the US dollar and euro were mixed.
New Zealand Outlook: Complacency Is the Biggest Risk
New Zealand has arguably fared better during the global pandemic than any other developed country. While 2021 should see the New Zealand economy continue to fare well, complacency is the biggest risk, both in regards to COVID-19 and global growth, but also in relation to sky-high equity valuations, both at home and abroad.