Investment Research from our Members
Is there a lesson to be drawn from history? No two crises are the same but useful insights can be gleaned from comparisons, as Jerome Nunan explains.
Since the Global Financial Crisis, Growth equities have significantly outperformed Value equities in Europe. The Value style has suffered from low and falling interest rates. But it was not a straight line!
While concerns around credit market liquidity have been rising since the global financial crisis, the COVID-19 sell-off has highlighted how fragile liquidity can be during periods of real stress.
"Do weak oil prices explain the ESG outperformance, considering that many ESG strategies were underweight the energy sector? Being underweight in an underperforming sector clearly played a role, but not one big enough to explain the ESG outperformance."
The scale and speed of COVID-19’s impact on global financial markets has caused emerging market debt returns to decline at a pace not seen since the global financial crisis. However, history suggests the recovery of the asset class may also turn out to be quick.
Pitfalls to avoid and opportunities to seek.