The world is set for a strong cyclical recovery. Andrew Mulliner, Head of Global Aggregate Strategies, shares his thoughts on the divergence in economic fortunes that are beginning to appear and the likely impact on investment opportunities.
The recent steep rise in yields has unsettled markets but Nick Maroutsos and Andrew Mulliner, Portfolio Managers within the Global Bonds Team, believe the Fed and other central banks are in no mood to abandon their accommodative stance.
While record-setting prices for riskier assets hint at better days ahead, Portfolio Manager Nick Maroutsos believes that a complete exit from the pandemic may take longer than expected, justifying continued monetary and fiscal hyper-accommodation.
The US Federal Reserve declined to expand accommodative policy measures, but Nick Maroutsos, Head of Global Bonds, believes the decision does not suggest the central bank is backing off from supporting the economic recovery.
Portfolio Manager Daniel Graña explains that in light of the retreat from further global economic integration, reformist policies and value-added services are likely to become future drivers of emerging market growth and investment returns.