Following market declines this month, investors paying heed to media may have thought the sky was falling. In fact, it was no time to panic, as these declines only took us back to where we were in May. Simon Doyle discusses asymmetry in investor attitudes towards risk and why there will come a time when it will be important to be different.
You may have heard the saying ‘don’t put all your eggs in one basket’ but you may not know that – here’s a fact to impress your friends and excel at pub quizzes - it’s attributed to Miguel de Cervantes who wrote Don Quixote in the early 1600s. It’s widely thought of as the world’s first modern novel.
As markets move to price in further RBA rate cuts, Australia’s finely balanced economic position remains particularly exposed to geopolitical trade conflicts and the domestic housing market. After 27 years of continuous growth, the risk of a recession is now real, but by no means guaranteed.
While economic data has improved, our analysis indicates that, in the medium term, the probability of a recession is on the rise. This coupled with stretched equity valuations leads us to recommend caution until further improvements are observed.
Lesley-Ann Morgan, Head of Multi-asset Strategy and Jessica Ground, Global Head of Stewardship - ESG, discuss how to address the decisions regarding integrating ESG across multiple investments and setting a sustainability budget.
Schroders produces a wall poster each year that shows the relative performance of all asset classes from the past 20 years. It’s one of the most popular items we provide to clients because it serves as a stark reminder of the role diversification plays in portfolio construction.
With the US Fed recognising the need to pay attention to inflation risk and an overheating economy by relaxing the talk of rate rises, and a downgrade in the economic outlook, the start of 2019 has been led by a rebound in equity markets.