Remember last year when most financial commentary was saying that market volatility was too low? That was a pretty unusual state of affairs.
Most of the time market commentary presents us with a very different picture of markets. Asset prices “plunge,” “plummet,” “sink” and of course “crash.” Or they… Read the article
Today, the US imposed tariffs on $34 billion of Chinese imports, marking what some see as the official start of Donald Trump’s ‘trade war.’ The trade war story has come to dominate market commentary as the second quarter has progressed, deflecting attention from the… Read the article
Eric recently wrote a fascinating piece on the ‘volatility virus’ which has contaminated the professional investment community. This blog post builds on that piece by considering the use – more specifically, the misuse – of quantitative ‘analysis’ more generally.
It is important to point out I am… Read the article
Remember the ‘fragile five’? These were five emerging market currencies that were deemed to be most at risk of US policy tightening during the ‘taper tantrum’ of 2013. The main concerns for these economies centred on their vulnerability to foreign capital outflows.
Recently we’ve seen a re-emergence… Read the article
Volatility returned in February, but not the kind of volatility we have been used to for much of the period since the financial crisis.
Instead of being about growth fears, the catalyst for the equity market drawdowns in early February was pressure on valuations caused by rising… Read the article
This latest ‘flash crash’ is a notable event. There have been only three phases in last 25 years when the S&P500 has moved this rapidly in this short a period of time, a fact drawn to my attention by my perceptive colleague, Marc Beckenstrater (see figure 1). Similar moves in… Read the article
Stuart wrote last year on some of the challenges associated with relying solely upon the Shiller P/E as a measure of equity valuation. This debate has been widely covered and is somewhat moot at any rate, given that the US market is looking expensive relative to history… Read the article
Is it true that “the easy money has been made?”
This is something that it has been common to hear over the last couple of years and, it seems, is even more common today.
But, as Morgan Housel pointed out in 2015:
One of the most common clichés of the last couple of years is the idea that we have been in ‘the most hated bull market in history.” Today attitudes are shifting.
Dave wrote in summer 2016 about a pivotal moment in investor psychology and asset pricing:… Read the article
I made what is turning into an annual pilgrimage to the brilliant Kilkenomics festival in Kilkenny, Ireland, last weekend, this time along with Eric Lonergan and Tristan Hanson from M&G’s multi-asset fund management team.
En route, we met some clients in Dublin and then took the opportunity to set the… Read the article
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OKWelcome to the M&G Multi Asset Team’s Allocation blog, previously known as the Episode blog. We have changed the name of our blog to resonate better with our readers in Europe, however, the content and purpose of the blog has not changed. The Allocation blog continues to aim to provide unique market perspectives from our dedicated team of experienced asset allocators.
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