The investment world has been rocked by two bank failures in the US and a crisis at a Swiss giant, Philip Saunders argues that this is a healthy development for the long term.
Confirmation that US inflation was continuing at a high pace offered a dilemma for markets seeking to anticipate the Federal Reserve’s (Fed) next move.
The Fed stuck to its inflation-fighting script yesterday, pointing to other tools available for fighting market stress. Markets didn’t really appreciate it – but it does suit our script.
Following a turbulent week in the markets, Graham Wainer (CEO Investment Management, Stonehage Fleming) reflects on financial sector stresses and implications for the investment outlook.
Strength in employment and inflation has caused markets to raise the implied terminal rate while still expecting the Fed to normalize policy – which is different from easing – in 2024.
Despite macroeconomic headwinds, commodities markets may offer attractive return potential this year in light of ongoing supply constraints and China’s reopening.
M&G believes we are ready and positioned for 2023. More importantly, they continue to hunt for the ‘known unknowns’ hoping to shed a speck of light on the ‘unknown unknowns’.