Macro Matters is a global investment blog brought to you by LGIM’s Asset Allocation team. We’re focused on sharing our most compelling thinking to help you become more informed investors.

Latest articles

Portfolio Thinking

Correlation galaxies – how to grasp asset class behaviour over time

Correlations show us how assets have moved relative to each other in the past. As multi-asset investors, one of our key objectives is to identify assets that improve diversification. To do this, we try to combine assets with low or even negative correlations. This sounds easy, but can be surprisingly difficult in reality.

Read more

Portfolio Thinking

Emerging by name, emerged by nature

Emerging market assets have long been a source of both potential profit and peril for investors. 2017 saw an incredible streak of capital inflows into emerging market equities, bonds and currencies. Whilst returns are still characteristically volatile, this historically maverick asset class has become more mature and resilient than ever before, as was highlighted during February's market sell-off.

Read more

Portfolio Thinking

The linker tail

The UK inflation-linked government bond ('linker') market is dominated by vast UK defined benefit pension schemes. Derisking by schemes tends to increase demand for linkers as equity prices rise, pushing up their prices. For multi-asset investors seeking diversification, that could make them less attractive to buy.

Read more

Strategy

Land of slope and glory

The US yield curve has consistently flattened since the Federal Reserve began tightening monetary policy several years ago. History strongly suggests that this is an entirely normal market reaction to a rate hiking cycle. If short-term interest rates continue to rise at the pace we expect, we could well be looking at an inverted curve by the middle of 2019.

Read more

Economics

Trading places: how to boost post-Brexit Britain

Following the EU referendum, financial markets initially expected the worst, with the weakness of the pound the clearest indication of deteriorating sentiment. And yet, many saw the depreciation as an opportunity for the economy to rebalance away from consumer spending and towards more trade. With this in mind, how successful has the UK been?

Read more

Strategy

Tariffs and Trump-induced turmoil

Shifting market narratives suggest the latest squall may not have passed, even though the solid underpinning of the global economy is likely to prevail in the coming months.

Read more

Strategy

Peak Bad Trump?

The pendulum has now swung in favour of Bad Trump but has it reached its peak?

Read more

All posts: 290

Page No: 1

NoOfPages: 42

All posts: /?page=2