Since the nadir of the financial crisis markets have been nigh-on irrepressible with investors enjoying huge gains. But fears are rising that the rug is about to be pulled from under their feet. The environment of ultra-low interest rates and quantitative easing has helped global equities soar since markets bottomed out in March 2009 and […]
The combination of low inflation growth and excess liquidity following the ECB’s quantitative easing programme has distorted bond valuations, with some short-duration instruments now offering negative returns. At the beginning of March nearly $3.85trn (£2.56trn) or 17 per cent of developed market global government bonds traded at negative yields, according to Columbia Threadneedle Investments. In […]
M&G fund manager Steven Andrew has slashed exposure to US and UK government debt in his £322m Episode Income fund to ward off concerns about potential risks emerging in the western economies. A year ago over 25 per cent of the fund was invested in US and UK government debt because it was yielding 4 […]
It is easy to be wise after the event but given the ending of quantitative easing by the US Federal Reserve last year (and therefore no more extra dollars being “printed”) simple economic theory would predict that the price of something no longer in excess supply should rise. And it did! From the end of […]
The man at the helm of the recently merged business Columbia Threadneedle Investments is an industry veteran who has watched how increasing regulation has shaped the markets. A former board member of the Investment Management Association (now known as the Investment Association) and a governor of the Pension Policy Institute, Campbell Fleming says it is […]
The eurozone is breathing easier these days thanks to the European Central Bank’s quantitative easing programme. The central bank raised this year’s Eurozone growth forecast to 1.5 per cent up from 1 per cent previously. Eurozone consumer prices fell by 0.1 per cent in March 2015 from a year earlier, suggesting that fears of continued deflation […]
This year got off to a rocky start for US equities. Until recently, investors believed the Federal Reserve would not raise interest rates in the near term; however, it has recently changed its language about being patient with rate increases and markets are now expecting a hike in the next few months. The prospect of […]
A strict buy and hold discipline has served managers Richie Freeman and Evan Bauman well.
While the UK was waiting for Chancellor George Osborne to give his much-anticipated Budget speech, in the US the Federal Reserve was deciding on its next move on interest rates. The US Central bank surprised the markets when it dropped its commitment to be “patient” when considering interest rate increases, while also signalling it is […]
A delayed rate rise could mark the end of the dollar’s recent strength, which may well be what the Fed is hoping to engineer.
A stronger dollar ought to be good news for investors, provided the upward trajectory does not get out of hand
Indices both at home and overseas can be notoriously misleading.