Market GPS
Investment outlook 2021
What should be on the radar for investors in 2021? Market GPS helps direction-set with a video summary, in-depth asset class analysis and our latest portfolio manager views.
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The Fed’s new policy, inflation and its implications for U.S. bonds
Greg Wilensky and Michael Keough discuss their outlook for U.S. inflation after the U.S. Federal Reserve’s policy change, and its impact on U.S. bond markets.
A letter to the Fed from a concerned friend
Head of Global Bonds Nick Maroutsos expresses concern that monetary policy focused on financial markets will do little to ignite the growth needed for the economy to recover from recent weakness.
A superfluous tweak to the Fed’s mandate
Nick Maroutsos, Co-Head of Global Bonds, believes that despite a shift in policy, the US Federal Reserve will likely not have to worry about watching inflation climb above its target of averaging 2% over the long term.
RBA to markets: “We are still here”
Portfolio Manager Dan Siluk explains that, despite economic conditions appearing to stabilise throughout much of Australia, the Reserve Bank of Australia felt compelled to recommence bond purchases to establish its credibility with respect to its yield curve control programme.
Fed watch: stealth yield curve control?
Head of Global Bonds Nick Maroutsos describes the Fed decision in July to hold rates steady as a non-event given that the central bank, through its actions, has already proven its willingness to do whatever it takes to support the US economy during this unprecedented period.
So… what about inflation?
John Pattullo, Co-Head of Strategic Fixed Income, shares his views on the most frequently asked question by clients these days: “what about inflation?”
Fed Watch: despite high marks, Fed still has issues to resolve
Co-Head of Global Bonds Nick Maroutsos gives the US Federal Reserve high marks for ensuring properly functioning financial markets but believes that work still needs to be done to support households and small businesses most vulnerable to the economic disruptions caused by the COVID-19 pandemic.
A negative fed funds rate: not yet willing – or needing – to go “there”
Co-Head of Global Bonds Nick Maroutsos states that even without negative interest rates, bond portfolios must work harder to achieve desired results.
Credit resilience but confusion surrounds longer-term inflation outlook
Jenna Barnard, Co-Head of Strategic Fixed Income, shares the Strategic Fixed Income Team’s current thoughts and views on bond markets, and addresses the most frequently asked question: is inflation on the rise?
Quick view: the MPC maintains its stance
Oliver Blackbourn, Portfolio Manager on the UK-based Multi-Asset Team, responds to the MPC’s dovish view on prospects for the UK economy, although risks remain skewed to the downside.
Keep a close eye on the real economy
Why financial markets should ultimately be focused on the outlook for households in consumption driven economies like the US.
Credit spreads — from reassuringly expensive to scary cheap, and now: just cheap?
John Pattullo, Co-Head of Strategic Fixed Income, believes that over the last month corporate bond spreads have gone from scary cheap to just ‘kind of cheap’ now. As the dust settles in the markets, he remains optimistic that there are opportunities to be had going forwards.