The start of the year is always a good time to focus on personal improvements with resolutions. In this edition of VantagePoint, we share in the spirit of a new year by providing investment resolutions: Ten Temptations to Resist in 2017 Chasing macro and political developments Investing while looking through the rearview mirror Sticking with…
December’s publication summarizes three articles on inflation. The first highlights three common misconceptions about commodity futures, including that commodity spot prices provide an inflation hedge; the second reviews the inflation-protection properties of cash, bonds, equities, and real estate; and the third argues that the reflationary pressures that were building prior to the US election are likely to continue.
The surest call to make for 2017 is that higher growth expectations will be paired with the distinct possibility of negative outcomes, putting a premium on diversification and liquidity management.
Change is in the air and the prospect for a bit of sunshine to break through the overhang of slow growth and lower-for-longer yields is palpable. Of course, the sun doesn’t shine forever, and overall our views are little changed. The things we have been worried about for some time—high valuations for certain risk assets, record-low interest rates, slow economic growth—have not gone away. The surest call to make for 2017 is that higher growth expectations will be paired with the distinct possibility of negative outcomes, putting a premium on diversification and liquidity management.
November’s publication summarizes two articles and one speech related to climate change. The first highlights how a decarbonized index could outperform its benchmark; the second suggests that too rapid a transition to a low-carbon economy poses a risk to financial stability, just as climate change itself does; and the third argues that all investors should consider climate risks when making investment decisions.
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.