Global liquidity and emerging markets

Emerging markets have benefited from an extremely accommodative environment but global liquidity conditions are becoming less easy than they used to be. Today we find ourselves in a world where central banks are reviewing their unconventional stimulus measures. The European Central Bank (ECB) is discussing tapering quantitative easing (QE) while the Federal Reserve (Fed) is … Continue reading “Global liquidity and emerging markets”

Does low volatility mean a shock lies in store for investors?

Despite the many economic and geopolitical risks in the world today, volatility in asset markets has been remarkably subdued. The Vix index, the market’s so-called fear gauge, has recently fallen to a reading of around 10. This is exceptionally low compared to long-term norms. and only just above the all-time low of 9 that it … Continue reading “Does low volatility mean a shock lies in store for investors?”

Volatility and lower yields in June

Share prices in the UK plunged in June following the UK’s unexpected decision to leave the European Union (EU). In the much-discussed referendum, a narrow majority voted in favour of Brexit, triggering turmoil across global financial markets. In the UK, gilt yields posted sharp declines, the pound plunged to a three-decade low against the US … Continue reading “Volatility and lower yields in June”