Are the bears in hibernation, or just napping?
Despite some large price swings, gold has solid underpinnings
‘Fallen angels’ of the bond world are getting a better reception than the disgraced seraphim in Paradise Lost. Pondering the power of the Fed, our head of fixed income Bryn Jones is reminded of John Milton’s epic poem.
Our lives have been turned upside down by the coronavirus crisis, which is having a profound impact on the global economy and financial markets. Governments are working hard not just to slow the spread of the virus but also to help businesses and their employees. They've announced a range of extraordinary measures, which are being supported by action from central banks.
A plunge in oil prices has sent markets reeling, but the epidemic is still the main concern.
Government budget balances are misunderstood. By politicians — sometimes wilfully — and even by some economists. So it’s no wonder then, if they’re misunderstood by the public.
Global markets have been focusing on US rate cuts over the past few months. But investors are increasingly looking to governments to stimulate growth, with a record 57% of fund managers saying fiscal policy is too restrictive, according to a recent survey of fund managers by Bank of America Merrill Lynch.
The UK’s first December general election in nearly 100 years punctuated an eventful year for politics and the economy. Financial markets experienced a series of mood swings throughout 2019, but ended on a high as investors regained their appetite for risk. Despite ongoing uncertainty, including Brexit and trade tensions between the US and China, we remain positive about the outlook for 2020.
So much emphasis on ensuring people don’t take on too much investment risk could be creating a different problem, argues David Coombs, our head of multi-asset investments. Case study: dear old dad.