Markteinblicke

The plates under the global economy are shifting. Advances in technology, population change, decarbonisation and geopolitical pressures are both catalysing new industries and rendering some assets obsolete.

In his annual outlook, Global Head of Investment Strategy & Research Rob Martin considers long-term performance as the combination of structural tailwinds and cyclical opportunities.

As inflation and growth dynamics vie with political risk for investor attention next year, we anticipate fresh volatility – and opportunity – in this higher-rate environment.

Ben Bennett, Investment Strategist APAC, examines the extent to which three different macroeconomic scenarios may affect income opportunities for bond investors as we head into 2024.

Every quarter, LGIM’s Active Strategies team collects its latest thought leadership to address the key questions facing investors today.

In their latest investment outlook, our Asset Allocation team discuss the ‘unstable table’ on which US equity market gains have been built in the year to date – and how it’s affecting their positioning.

As the dust begins to settle following a turbulent 2022 and the recent banking crisis, we reflect on the varying dynamics of private credit markets, their differentiation and their role in investor portfolios

In their latest investment outlook, our Asset Allocation team weigh up the macro and market impact of stress in the banking sector – and how it’s affecting their positioning.

In their latest investment outlook, our Asset Allocation team explain why they worry that hopes of a ‘soft landing’ for the world economy may prove ephemeral – and what this means for how they are positioning

While a recessionary backdrop may mean private credit investors stay cautious in the short term, we believe there are grounds for optimism in 2023, not least higher starting yields.

The more policymakers worry about inflation, the less investors need to. We’re willing to buy into further market weakness – and have done so in the past weeks. But we’re also likely to dial down our stance should the prospects of a recession grow.

In our market outlook at the start of the year, we noted that investors should prepare for the unexpected, since we believed the road ahead was unlikely to be smooth. We were correct in our thinking, but not in the way we envisaged.

In addition to precipitating a devastating humanitarian crisis, Russia's invasion of Ukraine has sent ripples across markets and raised significant questions for investors over the long term.

In this article, we look at the high Sharpe ratios, improvement in quality and low duration of global high yield corporate bonds and explain why we believe that this asset class could be a valuable addition to a DB pension scheme portfolio.

In fixed income markets, it’s usually when things begin to ‘feel’ better that you run into maximum optimism. But wouldn’t it be ironic if the long-awaited reopening of economies and societies turned out to be a difficult period for markets?

We remain long risk assets, and are minded to increase this stance, as economic normalisation is on the horizon and policymakers remain supportive.

Our survey responses have revealed that inequality is an underlying, long-term thread weaving through many apparently shorter-term issues.

In this outlook, we bring together teams from across LGIM to answer the key macro and market questions for our clients over different time horizons.

As we look ahead to the next three months, and consider how to invest on behalf of our clients, we are confronted by seemingly conflicting signals from depressed bond yields and exuberant equities.

The American midterm elections are approaching and the crystal ball gazing has begun. Here’s what investors should consider regardless of whether the US votes for a ‘distilled Donald’, the ‘Democratic double’ or a ‘divided democracy’.

The economic expansion of the last decade has been a consistent tailwind for financial assets. We see next year as the start of the twilight zone between expansion and an eventual downturn that will likely mark the end of the cycle.

In our last quarterly outlook, we flagged our cautious posture on risk assets, taken due to a number of smouldering risks on the horizon. One risk we did not highlight, however, was that a pandemic would break out, causing untold human suffering and economic damage.

While the financial reforms pose risks to trading, we can take heart from the benefits of greater transparency, says Ed Wicks, Head of Trading at LGIM.

Get ready for a shift in UK market leadership, says Stephen Message, manager of the L&G UK Equity Income Fund.

Are market expectations too good to be true?

In a surprising result, the general election has ended in a hung parliament. At the time of writing, the Conservative party has won approximately 318 seats.

Global credit markets have shown remarkable resilience over the past year.

In a largely anticipated result, Emmanuel Macron has won the French presidential election.