Investments / Equities

Shifts and surprising developments so far in 2014

In 2013, equities soared and bonds were hammered as it became clear the Federal Reserve would reduce its bond-buying programme. In 2014, US equity and bond returns have been on par, and reasonably flat for the year. For the last two years, many analysts spoke of a Great Rotation from bonds into equities and investors after years of ‘hiding’ in low risk bond funds, will return to equities as their confidence increases. If this Great Rotation is taking place, so far market returns in 2014 don’t reflect it.

Equities to benefit as developed markets lead the recovery in global growth

Global equities are likely to benefit most as the theme of resynchronised global growth continues playing out over the coming year, with developed economies accelerating gradually and emerging markets bottoming out.

What now for EM equities? Why a reversal of fortunes signals opportunity

Emerging markets rallied during March – the first month of meaningful outperformance of developed markets since December 2012, with the MSCI Emerging Markets NDR Index up 3.1% compared with the MSCI ACWI NDR Index which rose just 0.4% during the month. This reflected rising local markets and a recovery in hitherto weak emerging market currencies.

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