Steven Andrew joined M&G in 2005 as a member of the portfolio construction & risk team, before moving to the Multi Asset team, where he helped to formulate asset allocation strategies for M&G's multi-asset fund range. In November 2010, Steven was appointed manager of the M&G Episode Income Fund. Before joining M&G, Steven worked at F&C Asset Management, Merrill Lynch and the Bank of England. He graduated from the University of London in 1997 with a degree in financial economics.
Just twelve short months ago, market sentiment was dominated by ‘tapering’. Bonds were being aggressively re-priced as investors raced to translate the latest comments from Ben Bernanke into a forecast for the 30-year rate of return on US sovereign debt; and equities were widely perceived as being the superior investment… Read the article
Former President Bill Clinton had a way with words. His erudition may have been less evident in his suggestion that there were alternative definitions of the word “is”, but it was more apparent in his robust response to Alan Greenspan after he’d been apprised by the then Fed Chairman… Read the article
The absence of ‘tapering’ from the Fed at its September meeting is a reminder what ‘forward guidance’ (or ‘conditional commitment’) actually means: not very much. The FOMC’s attitude towards policy is for it to be data-dependent. Big deal. This is the same as every other central bank and the same… Read the article
There has been a run of stronger data from the UK economy over recent weeks. This has encouraged a great deal of media commentary, heralding the arrival of a more sustained expansion, and seemingly raising expectations of UK GDP growth across the board – including at the Bank of England.… Read the article
What should we think about government bonds?
In a multi- asset portfolio, bonds can offer a variety of valuable characteristics: they can provide an ‘insurance policy’ (albeit an uncertain one) against losses in other areas, they provide a steady income stream; and they can provide potential capital gain to… Read the article
Forecasting Mumbo Jumbo
People get paid a lot of money to do things which, in the cold light of day, they’d probably be quite ashamed to admit. I mean, of course, forecasting economic data.
Even worse, other people move vast sums of money around in reaction to whether or not… Read the article