Market Insights

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.

In our CIO autumn update, teams from across LGIM assess the key implications of AI for our clients

In their latest investment outlook, our Asset Allocation team delve into the ‘time warp’ around an expected recession, arguing we’re not out of the woods just yet.

In their latest investment outlook, our Asset Allocation team discuss their positioning and investment views for the coming months, in light of rising recession risks, flaring geopolitical tensions and ebbing market liquidity.

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 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.

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

Despite the ongoing challenges, we see next year as a time for healing – for the economy, environment and society.

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 conficting signals from depressed bond yields and exuberant equities.

Developments in trade tensions, emerging markets and European politics may determine the trajectory of markets over the coming months.

Whether you’re looking at equities, bond yields, currencies or economic strength, it’s the US that’s been leading the charge. Is this likely to continue?

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 ‘one share, one vote’ standard has been in place since 1940 but the number of companies with unequal voting rights is on the rise.

What should investors make of rising yields, higher volatility and wider credit spreads?

Looking into 2018, US policies will remain one of the biggest focal points for EM assets, even if it has felt like ‘waiting for Godot’.

Companies that have seen their share price depreciate sharply in the face of self-inflicted wounds, structural challenges, or cyclical headwinds, represent potential ‘turnaround stories’. In this article we look at the attraction of investing in these businesses, and evaluate the risks or opportunities they present.

We expect another strong year for growth with the global economy firing on almost all cylinders. But the market has priced in this optimism, implying greater vulnerability for disappointment. We expect the low interest rate environment to continue into 2018. While interest rates can drift up, we do not think this is the beginning of the end for the bond markets.

Monetary support is being tapered despite significant risks. Pressure is building steadily and we think that recent resilience is going to be tested.

A rising China creates the potential for tension between itself and the leading world superpower, the United States. Investors should pay attention to the shifting of global power structures.

Just as the popularity of two-wheeled pedal power has been surging across London, a different type of cycle, the economic kind, has vanished from sight.