Global Strategy Outlook

Global Strategy Outlook - Articles & White Papers

Our Global Strategy Outlook section contains articles, white papers and investment research for multi-asset managers focusing on the global markets outlook for asset allocators. Some of the papers in this section focus on structural and cyclical factors, for instance: how demographics impact financial markets, assessing the impact of the baby boomer generation on equities, fixed income and property prices, capital market return assumptions (perhaps 5-year or 10-year return forecasts for major asset classes), and an historic overview of "profit share" in the economy (are we in a "profits bubble"?). Most of the investment research in this section, however, is short-term in nature, seeking to explain and forecast market moves and trends, particularly for those with a global macro or TAA brief. From the regular monthly and quarterly investment reports we feature, perhaps the most popular are JP Morgan's Quarterly Guide to the Markets, Quarterly Investment Outlooks from Standard Life and Allianz, and monthly investment outlooks from LGIM and Pictet.
  • Bank for International Settlements

    Demographics will reverse three multi-decade global trends (BIS, 2017)

    Between the 1980s and the 2000s, the largest ever positive labour supply shock occurred, resulting from demographic trends and from the inclusion of China and eastern Europe into the World Trade Organization. This led to a shift in manufacturing to Asia, especially China; a stagnation in real wages; a collapse in the power of private sector trade unions; increasing inequality ...

    • Professional
    • Views: 3000
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  • Robeco

    Five-Year Expected Returns 2018-2022: Coming of Age (Robeco)

    In this 106-page document, Robeco presents its forecasts for the 5-year expected returns for all major asset classes.

    Robeco strategists aim not to give an accurate, detailed account of what will happen the next five years: they do not profess to know that. They present the broader trends, the averages. This publication includes special topics on secular stagnation; the ...

    • Professional
    • Views: 3866
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  • Credit Suisse

    Supertrends - Investing for the Long Term (Credit Suisse, 2017)

    This 97-page report has been produced by Credit Suisse. It analyses the key trends affecting long-term investing, such as geopolitics, demographic shifts, and rapid technology change. These movements provide a tangible link between today’s major developments and portfolios' risk/return profiles in the long run.

    • Professional
    • Views: 2770
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  • World’s largest hedge fund chief: The economy looks grim in the long-term (May 2017)

    In this blog post, Ray Dalio of Bridgewater Associates discusses the near- and long-term prospects for the global economy. The near term looks good because the economy is now at or near its best, and there no major economic risks on the horizon for the next year or two. The long-term looks scary because there are significant long-term problems (e.g., high debt and non-debt ...

    • Professional
    • Views: 2040
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  • Fidelity International

    Outlook 2018: Time for change? (Fidelity International)

    Markets may have proved surprisingly resilient over 2017 but the clock is still ticking on the unprecedented market environment of recent years. The year ahead could see the unwinding of both the extraordinary bull-run across equities and bonds, and the global policy experiments that have underpinned this. If midnight strikes in 2018, how should investors navigate the uncertain ...

    • Professional
    • Views: 1138
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  • State Street Global Advisors

    2018 Global Market Outlook (SSGA)

    Global growth is now more evenly distributed (and expected to return to its historical trend rate of 3.7%), inflation remains (so far) muted, and the coming year should be supportive for risk assets. SSGA's Global Market Outlook discusses these key themes for 2018, and how the current macroeconomical and geopolitical backdrop ought to shape portfolio positioning going forward ...

    • Professional
    • Views: 2054
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  • PineBridge Investments

    The Shift to Reflation: Assessing the Impact to Portfolios (PineBridge, Sept 2017)

    What worked well from an asset allocation perspective during the stall-speed regime is unlikely to offer strong risk-adjusted return moving forward. While academics have demonstrated that asset classes tend to maintain generally consistent Sharpe ratios over long periods, these averages may not hold true under different market regimes, which can, at times, span over several cycles. ...

    • Professional
    • Views: 1113
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  • Schroders

    Long-run asset class performance: 30yr return forecasts (2017-46) Schroders

    Schroders Economics Group produces 30-year return forecasts, on an annual basis, for a range of asset classes. Here they outline the methodology used, which is based on a series of building blocks and estimates of risk premia, and surmise the key conclusions from our analysis. For the first time, this year they are also publishing a wider range of country-specific returns for ...

    • Professional
    • Views: 2758
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  • QMA

    Some Like It Hot: Fiscal Policy, Inflation and the Role of Real Assets (QMA, March 2017)

    • 13 Mar 2017
    • Company: QMA

    Of all the variables the new administration brings for investors one of the trickiest to plan for is inflation. Inflationary pressures were already building before the election ushered in the prospect of a sweeping agenda of pro-growth fiscal and de-regulatory policies. One common way to hedge against inflation is to diversify portfolios with exposure to real assets – ...

    • Professional
    • Views: 1421
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  • Credit Suisse

    Credit Suisse Global Investment Returns Yearbook 2017

    This excellent 59-page document from Credit Suisse explores a range of important investment themes (particularly recent monetary policy) within the context of long-run global asset returns. The report contains data for 26 countries and regions going back to 1900. It's a detailed, must read report.

    • Professional
    • Views: 1611
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  • T. Rowe Price

    Global Equities: The Changing Face of Value (T. Rowe Price, Nov 2016)

    For many value investors, the last few years have proved to be a challenging period given a backdrop of low growth, structural change in China, elevated macroeconomic risks, and bouts of volatility. This environment has led to a dominance of growth and quality factors, creating a meaningful headwind for value-oriented stocks.

    • Professional
    • Views: 1116
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  • Society of Actuaries

    Future Equity Patterns and Baby Boomer Retirements (SOA, 2015)

    How will changing demographics impact asset prices? This is an important question for long-term investors. This excellent paper from the Society of Actuaries reviews the evidence from sixty different papers and covers asset classes from equities, fixed income and property. The general consensus appears to be that the retirement of the baby boomer generation ...

    • Professional
    • Views: 1146
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  • KKR

    What Does Population Aging Mean for Growth and Investments? (KKR, Feb 2018)

    • 14 Feb 2018
    • Company: KKR

    This excellent paper by KKR explores what population aging means for growth, investment, and social cohesion around the world. The authors addresses some of the economic implications of aging, the levers countries may pull to counteract these challenges, and the investment opportunities that arise as a result.

  • Research Affiliates

    CAPE Fear: Why CAPE Naysayers Are Wrong (Research Affiliates, 2018)

    U.S. CAPE ratios are at levels previously reached only in 1929 and during the tech bubble. In the fall of 2017, the U.S. stock market surpassed a CAPE ratio of 32, nearly double its long-term historical norm of 16.6. Whenever the Shiller PE suggests caution, CAPE skeptics abound, explaining why we should turn away from the warnings of a high CAPE ratio. Should we fear the lofty ...

  • Invesco (Europe)

    2018 Investment Outlook (Invesco)

    The surging markets of the past year have taken place against a backdrop of macro developments whose long-term impact on the world economy has yet to be realised: uncertainty regarding the UK’s withdrawal from the European Union, potential tax reform in the US, North Korea’s nuclear weapons testing, continued oil price volatility and the outcome of key elections in ...

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