As many economies have started to bounce back from the worst of the pandemic, we are now back in more familiar territory of the new-old obsessions – central banks, the rate of money-printing and inflation. Markets have sold off on the arrival, as opposed to just the expectation, of better times.
There's been a sizeable rotation in equity markets along with a sell-off in bonds. Bond-like equities, which benefitted most from lower discount rates, have fallen. The most speculative, Covid-bolstered, technological and crowded end of the market has been hit the hardest. Markets now seem reminiscent of where they were before the pandemic. The difference today is there is considerably more corporate debt, public finances have been traduced and market valuations are broadly higher. Policy-wise, we think there is likely to be a broader shift to more government intervention in markets, al...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
