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Investment Talks - Late cycle features at play: more pain, but not the end of the game
United Kingdom, 12 October 2018
- Market sell-off: a late cycle feature where uncertainty due to tariffs, rates and oil prices are sending some red signals. Autumn comes with a change of mood in the market triggered by rising US Treasury yields, amid a hawkish FED committed to avoid any sign of overheating, and uncertainty surrounding the upcoming earnings season. All elements that will keep volatility on the rise over the next weeks.
- Not a scary movie, but be ready for more pain. Yet, we see this as a market correction, rather than the start of a prolonged bear market. We expect some a further down trend also due to the technical reallocation of market risks. Growth areas of equity markets and high leveraged areas of the credit markets with tight valuations are the most vulnerable places at the moment.
- How to face this environment: add duration in US debt, stay diversified in terms of risks, focus on quality and liquidity in credit, go for value (use available liquidity to buy the most discounted names) and stay out of stretched growth areas.
Experts
Pascal Blanqué has been Group Chief Investment Officer and Head of the investment management platforms since 2005, and he was also Global Head of Institutional Business since the creation of Amundi[...]
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Vincent Mortier is Deputy Chief Investment Officer (CIO) and Member of the General Management Committee at Amundi. He also oversees Amundi’s business in Greater China and South-East Asia. He has[...]
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Jeannette Spears
International Press Relations
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Amundi, the leading European asset manager, ranking among the top 10 global players[1], offers its 100 million clients - retail, institutional and corporate - a complete range of savings and investment solutions in active and passive management, in traditional or real assets.
With its six international investment hubs[2], financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.
Amundi clients benefit from the expertise and advice of 4,500 employees in nearly 40 countries. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages nearly €1.6 trillion of assets[3].
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