Market Insights

Private credit performed well in 2023, with low default rates and plenty of market activity. Will this continue into 2024?

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

As delegates gather at COP27, they confront the same long-term challenge posed by climate change as they did last year. But the context has changed dramatically: in light of the war in Ukraine, governments need to balance net-zero goals with a new imperative for energy security.

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.

With record amounts of stimulus still gushing through global markets, and the economic cycle at a relatively early stage, we remain positive on risk assets.

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.

In this outlook, teams from across LGIM offer answers to some of the biggest questions for investors raised by COVID-19.

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.

We remain cautious overall as risks of the US election, trade with China, unpredictable geopolitical events and Brexit continue to smoulder.

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

Are market expectations too good to be true?

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.

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

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.