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Cross Asset Investment Strategy, CIO Views

Sentiment rebound favours rotation towards value

Pascal Blanqué, Group Chief Investment Officer, Vincent Mortier, Deputy Group Chief Investment Officer Amundi Asset Management, December 2019

In recent weeks equities rallied along with bond yields as investors reacted to the prospect of a US-China ‘phase one deal’ and fading global recession fears. The value of negative yielding bonds continued to fall, from US$17 trillion over the summer to the current US$12.5 trillion. While equities were previously overshadowed by the excessive gloominess on the global economy and earnings, markets rebounded after corporate results in the US and Europe met or exceeded low expectations, and as economic data did not show any material worsening. The mantra now seems to be ‘not so bad is the new good’.

 

Amundi Asset Management

Amundi is Europe’s largest asset manager by assets under management and ranks in the top 101 globally. It manages 1,476 billion2 euros of assets across six main investment hubs3.