Taking a step back from day-to-day market movements, we have reflected on our team's overall investment strategy outlook and economic thinking. An update of our established framework of recession indicators suggests that the economy has moved into late cycle much faster than we expected. This makes our bullish view on equities more tactical than it was before.
Our 2021 report outlines how we are making our targeted engagement programme even more ambitious, in order to bring about net-zero carbon emissions.
Commodity investments can provide diversification and hedging benefits against inflation risk, but are not a panacea. Good performance in inflationary periods has historically been offset by lower long-term return expectations. Our view of the trade-off suggests commodities can play a role in portfolios, bringing beneficial diversification potential, when needed.
Ever since the outbreak of the pandemic, the world economy has essentially been on a war-footing, involving the deployment of previously unthinkable amounts of fiscal and monetary stimulus. Now, as COVID-19 begins to retreat – albeit with some notable exceptions – it is time to win the peace.
LGIM review the Bank of England's decision to increase its interest rate to 0.50% and the implications for the economy, gilts, and corporate bonds.
Hot forward-looking economic indicators will eventually cool. But we believe this will signal a maturing cycle, not the beginning of a recession.
Frontier markets (FMs) have performed well in recent months. Have valuations now become stretched?
The first inflation test is fast approaching. The economy and the Fed’s new framework should pass, but next year could be much more challenging.
Even though 2022 has begun with an abrupt change in the macro narrative, stoked by the Fed, we hold the line on our bullish outlook for risk assets.
Watch our latest animation on the Multi-Index range, suitable to share with your clients.
Even though we're only a few weeks into the new year, investors have already seen some significant moves in markets. In a special CIO call, we discussed how they might play out.
In the first of a series of videos, Andrzej Pioch fund manager of the Future World Multi-Index range, discusses three ‘E’s’ of ESG.
After Trump loyalists stormed the US Capitol building, we discuss the president elect’s near-term priorities, from the pandemic to national unity.
There's never a quiet time for US technology stocks, it seems. The latest issue has been a very macro one - bond yields. The sharp rise in US bond yields has made for a painful start to the year for the sector, but we expect tech to continue outperforming through 2022.
From negative rates to political risk, we discuss how the trade pact, agreed last week, might shape the UK economic and policy outlook.
2021 could be described as a 'great acceleration' for sustainability policy: political leaders and policymakers committed to significant reforms, and empowered companies and industries to act. But are these reforms far-reaching or fast enough?
After a roller coaster 2020, what will 2021 bring? As we hastily forge our new year’s resolutions, our attention has turned to what’s next.
The US Federal Reserve's (Fed's) hawkish pivot has gathered pace in recent weeks as inflation and labour-market developments have forced a reassessment of maximum employment. The overheating risks we have been worrying about appear to have arrived earlier than expected.
The summer may be behind us and further restrictions may lie ahead, but we have warmed to the travel and leisure sector.
For responsible investors, divestment can have unintended consequences – and engagement is often underappreciated.