BlackRock’s Ben Edwards thinks “2017 is shaping up to look a lot like 2016” for bond markets as uncontrolled dollar strength, diverging regional economic paths and continued political risk keep volatility alive.
Psigma Investment Management head of investment strategy Rory McPherson is advocating contrarian equities plays, emerging markets growth stocks and US high yield credit as we enter the era of ‘Trumponomics.’
With uncertainty over the justification for 2016’s positive returns and valuation pressures continuing to mount, it may be time to focus on capital preservation, according to Morningstar Investment Management CIO Dan Kemp.
Volatility in the bond markets might be more muted than expected if the impact from rising rates takes root swiftly, according to Rayner Spencer Mills Research director Ken Rayner.
When it comes to the active versus passive argument, co-head of multi-manager at BMO Global Asset Management Rob Burdett remains steadfastly “agnostic.”
SYZ Asset Management multi-asset man Hartwig Kos has predicted that bond markets will remain volatile, manipulating equity valuations further.
Suspicions have been raised about European bond scarcity, but rising yields and declining prices point to further volatility, said Julius Baer head of fixed income, Markus Allenspach.
Morningstar has reduced its discretionary income portfolios’ holdings of high yield bonds, using the money to raise exposure to “good value” emerging market debt.
United Kingdom based income investors will need to look beyond home shores in 2017, according to a Kames Capital fund manager, with better opportunities for income in the US and Asian markets.
To protect against volatile markets and political uncertainty, Rowan Dartington is giving higher weighting to cash and building wealth portfolios that offer clients a truly global perspective.
The third quarter proved a dramatic one, with the fallout from the UK referendum and the subsequent uncertainty around the US election. Private client managers have much to ponder going into next year, writes Lee Carpenter, an investment analyst at Enhance.
Although a shadow of political risk hovers over Europe, those keen to invest in the region can take advantage of some resilient high yield bonds and relatively cheap stocks, according to Brooks Macdonald head of research Richard Larner.
Global growth will struggle in 2017 and investors are advised to move away from expensive sectors and pivot to those that offer value, according to Kevin Anderson, State Street Global Advisors’ Hong Kong-based head of investments for Asia Pacific.
Thanks to the end-of-year ‘Trump rally’, 2016 has been a pretty good year for investors in risky assets. However, not all asset classes have fared so well.
PA asked managers their thoughts on the big issues facing investors in 2017.
2016 has been a remarkable year. The two best performing large equity markets this year are countries that have been mired in recession for years. At the same time, the stock market of the world’s fastest growing large economy has been delivering some of the lowest returns.
Investors should diversify their portfolios as broadly as possible in order to protect against fresh risks in the economy throughout 2017 Kleinwort Hambros has said.
M&G Investments’ Richard Woolnough has said he sees a move away from the UK as a capital markets centre in favour of the US developing, and is tweaking his fund’s holdings accordingly.
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