- Market sell-off requires more emphasis on diversification
Market sell-off requires more emphasis on diversification
Monday 05 February 2018
Research / Market
Solidity of fundamentals remains intact and does not justify the current correction.
- Market sell-off. After more than a year without a significant correction, equity markets declined as interest rates moved sharply higher due to concerns that inflation may be rising. The decline was overdue, in our opinion, and is consistent with our belief that inflation is likely to increase, but should remain subdued.
- Fundamentals: Macro and micro fundamentals at corporate level are intact as the recent earnings reporting season confirms.
- Volatility bounced back from ultra-low levels. Macro hedges(volatility, gold, safe haven cross rates, options strategies) in this market environment are key.
- Embrace an active approach. An active and flexible approach within a solid macro and micro fundamental backdrop is key to possibly capturing opportunities that this market correction may bring again.
Global Investment Views - May 2018
CIO views: High conviction ideas from Amundi Global Investment Committee
Asset Class Return Forecasts - Q2 - 2018
"Global growth is expected to remain mostly supportive buoyed by robust demand and continues to be the main driver in asset prices for the next few years."
Fed vs ECB: Towards a stronger decoupling of monetary policies?
"US and European economies both continue to expand but at different paces. While US growth will likely pick up this year, boosted by an expansionist fiscal policy, the Eurozone cycle probably peaked last year."