News & Research

Gilt yields soar after autumn statement; Pound benefits from higher-for-longer rates; Four-week equity winning streak helps reduce portfolio risk.

Investor sentiment continued to recover last week with only one market (Asia ex-Japan) remaining bearish as of last Friday. Investors in China remained bullish (or hopeful?), despite the market’s reluctance to rise without further evidence of a credible economic recovery. Elsewhere, sentiment was still negative in Global developed markets, Global emerging markets, and Europe, neutral in Global developed ex-US markets, Japan, and the US, and turned positive in Australia and the UK.

Volatilities and correlations climb in Europe; US small caps among the big winners of last week; UK Earnings Yield style factor takes off.

Investor sentiment improved markedly last week with only two markets (Asia ex-Japan and Europe) out of seven previously, unable to complete their recovery on time and ending the week still bearish. Sentiment in Global developed markets, global developed ex-US markets, global emerging markets, Japan, and the US rose from their bearish levels in the previous week to end last week still negative but seemingly on a strong recovery path.

November Rebound; “Up and to the Right” vs “Down and To the Right”; Not Enough Winners

Investor sentiment recovered from its lows last week but remains bearish in seven of the ten markets we follow. Of the three markets where investors were not bearish, sentiment rose from negative to neutral in the UK and Australia but declined slightly in China, after the world’s second largest economy fell into deflation last month – sparking fears that the tepid recovery so far, may have just been an illusionary blip.

SimCorp is announcing that it will merge with Axioma, a leading global provider of factor risk models, portfolio construction tools, and multi-asset class enterprise risk solutions.

Short-horizon predicted risk rose substantially last week, and now exceeds medium-horizon; Outsized style factor returns and US factor reversal last week; Return dispersion is back up.

Surprise drop in Eurozone inflation could pave the way for lower rates; Dovish Fed weighs on the dollar; Biggest stock-bond rally in 12 months boosts portfolio risk.

Investor sentiment remained bearish last week across most markets we follow but halted its descent, allowing markets to enjoy a brief relief rally. Of the three markets where investors weren’t bearish, sentiment turned negative in Australia and in the UK, but rose in China, where it became increasingly bullish after recent data hinted at a bottoming out of the economy – following repeated stimulus efforts from the authorities.

With over 5,000 advisors our client needed a tax-aware optimization engine that could quickly rebalance millions of accounts with specific asset allocations tied to client risk tolerance or goals.

Global risk appetites plunge; Asset diversification remains high; Israeli market tanks.