- Amundi Pension Funds Letter n°5
Amundi Pension Funds Letter n°5
Monday 30 July 2018
Research / Market
Building the long-term alignment
After several decades driven by short-termism, we have observed since the Global Financial Crisis the rising of a “long-term awareness”, the perception that we are facing long-term challenges and that long-term investment needs are expending.
The world can today observe some preliminary impacts of long-term materialising challenges on the society and the planet, such as climate changes or demography dynamics, having investors rethink the valuation of stock prices to include long-term trends not yet captured by financial markets. In addition, while life expectancy is increasing all over the world, the investment horizons are expanding and liability duration is increasing.
Bavarian elections: Eropean political landscape continues to evolve
"The poor performances from the traditional parties in the Bavarian elections represent early signs of a political reshuffle at the federal level."
Late cycle features at play: more pain, but not the end of the game
"We expect further volatility and possible additional down moves led by the growth part of the market and possible pressure on the high yield side as well. But it is not going to be a market capitulation."
Italian budget proposal under scrutiny
"The key points of the budget law. The Italian Government negatively surprised the markets by announcing a substantially increased budget deficit target for 2019-2021 to 2.4% in a move that could undermine the potential to reduce the Italian debt burden (130% of GDP) in the coming years"