Yes, but positioning for such risks is challenging as timing and specific circumstances are uncertain. Investors should rely on their usual lines of defense: portfolio diversification and liquidity provisioning.
Advice in Brief Bond yields have reached extreme levels this year amid soft growth, continued central bank purchases, and negative interest rate policies, dragging down prospective returns for a variety of asset classes. Capital markets are unlikely to deliver most investors’ long-term return objectives over the next five to ten years. In such an environment,…
Low rates have distorted markets and generated unintended problems for investors and lenders. Central bankers are increasingly aware of these consequences and are slowly moving to press the pause button. It will take even more courage for them to begin to reverse the unprecedented interventions in bond and other markets.
Despite its economic size, China remains under-represented in global investment benchmarks. Recently announced reforms have the potential to improve investor access and increase China’s weight in global benchmarks.
September’s publication summarizes three articles related to the impact of US presidential elections on markets. The first reviews how individual investors’ portfolio allocations change depending on the party elected, the second argues that market volatility increases as voters become less uncertain about the eventual election winner, and the third examines the prospects for fiscal policy in different election outcomes.
In this edition of CA Answers, two members of our Global Investment Research team share their differing perspectives on whether investors should temporarily de-risk portfolios today. Sean McLaughlin argues that diversified portfolios incorporate shock absorbers already, and that temporarily boosting tilts to defensive assets is likely to be counter-productive. Eric Winig agrees that market timing…
While corporate plan sponsors are keenly aware of interest rate risk within their defined benefit plans, few fully appreciate the complex and significant risk posed by credit spreads.
Before incorporating impact investments into their portfolios, we encourage families to define the overall context for their impact investments. Our contextual framework—focused on purpose, priorities, and principles—establishes the base of impact strategy and guides the development of governance structures. These elements will help ensure that family values and decision-making processes are advantages rather than obstacles in pursuing impact investing goals and objectives.
August’s publication summarizes three articles on financial stability. The first argues that low interest rates and the Brexit vote could increase risks to financial stability in the United States, the second suggests the Brexit vote could lead to a sharp tightening of credit in the Eurozone banking system, and the third highlights potential consequences of ultra-loose monetary policies and outlines policy solutions.
Yes, although as the mid-October deadline for significant regulatory-driven changes to US money market mutual funds draws near, investors that wait may find themselves with fewer options for funds that will continue to offer stable net asset values.