Has inflation bottomed?

Multi Asset Strategy Quarterly - January 2024

The MA Quarterly for the three months to December. The multi-asset team provides high level comment on the macro-economic environment, various thematic issues, the strategy, various asset classes and how they have been, and may be, affected by various factors.

Long the yen against the euro

Tight policy in Europe and very loose policy in Japan, leads us to predict a great asymmetry over the next 12 months between the two. To navigate the prospect of policy convergence, Iain Cunningham, Head of Multi-Asset Growth, explains why we are long the yen versus the euro.

Macro insights

Macro events can shape the future. Getting the direction of travel correct is a key driver of long-term investment performance, and that’s why assessing the implications of major events is crucial.

Do central banks risk ‘keeping at it’ for too long?

Throughout history, inflationary episodes have been rare. It has therefore been difficult for investors and policymakers to draw parallels of today’s experience to history.

Q3 in review

Despite significant volatility at the start of August, the third quarter of 2024 proved to be a strong one for global markets, across both equities and fixed income. This was driven by several central banks, including the US Federal Reserve and the European Central Bank, cutting interest rates, while US economic data proved to be more resilient than feared. An exception to the trend was oil markets, which saw prices fall over the period.

August in review

The month began with a sharp selloff in equities due to poor US employment data and a surprise rate hike in Japan, causing turmoil in currency carry trades. However, markets recovered as central bankers in the US and Japan signalled dovish policies, boosting global bonds and equities on expectations of aggressive rate cuts.

July in review

After a positive start to July, market sentiment soured as the month progressed on renewed China fears and some underwhelming ‘Big Tech’ earnings. Developed market equities outperformed emerging market stocks, with the latter dragged down by China. In the US, small-caps outperformed their large-cap counterparts. From a regional perspective, the UK was one of the few bright spots.

Multi Asset Strategy Quarterly - June 2024

The MA Quarterly for the three months to June. The multi-asset team provides high level comment on the macro-economic environment, various thematic issues, the Strategy itself, underlying asset classes and how they have been, and may be, affected by various factors.

The year of the ballot

Elections often move markets. This year, eight of the world’s 10 most-populous nations go to the polls in the same year for the first time ever. FX markets are often the best way to express views or hedge positions in and around elections, and FX volatility presents a source of potential alpha. We have produced this piece to help investors navigate this year. The year of the ballot.

Gold a key hedge for Trump 2.0

Iain Cunningham, Head of Multi-Asset Growth, discusses why structural trends, growing US fiscal risk and the increasing prospect of Trump 2.0 could provide tailwinds for the price of gold in the coming years.

Quarter two in review

It was a mixed second quarter for capital markets, with various election results driving up volatility. In the US, another strong run for AI-related tech stocks helped lift equity indices. In Europe, the ECB joined the growing list of G10 banks to start cutting rates; while in France, the announcement of a snap election weighed on sentiment.

US fiscal consolidation? Not in 2025

Multi-Asset team Analyst, Dan Morgan, discusses how US fiscal policy will continue to play an increasingly influential role. As investors navigate a new policymaking world, he considers what they should look out for.

May in review

May was a more upbeat month for capital markets, with most asset classes recovering from the losses of April. Although markets were more challenged towards the end of the month as global inflation data proved stickier than expected, overall investors grew more confident that rate cuts would still happen this year.

April in review

April was a more challenging month for capital markets, with numerous asset classes experiencing losses. Inflation proved stickier than expected, reducing expectations for rate cuts this year. This prompted further upward moves in US yields, weighing on fixed income assets. Emerging market equities and commodities bucked the trend, delivering healthy gains.

Capital Market Assumptions - March 2024

Ninety One’s Capital Market Assumptions framework focuses on the key drivers of long-term performance. We do this to better understand possible future returns, enriching discussions with our clients.

Multi Asset Strategy Quarterly - April 2024

Ninety One’s multi-asset team provides high level comment on the macro-economic environment, various thematic issues, the strategy, various asset classes and how they have been, and may be, affected by various factors.

Quarter one in review

The first quarter of 2024 was marked by continued strength for risk assets, with a number of major equity indices extending record highs. Economic data kept surprising on the upside, which lifted hopes that a recession could be avoided. Sharp upward moves in US yields weighed on global fixed income markets.

The geopolitical future that has already happened

The consequences of “the future that has already happened” are likely to be profound for investors, according to Sahil Mahtani, Head of Macro Research.

February in review

February was another strong month for risk assets, with several major equity indices at record highs. Improved sentiment towards China helped lift emerging market equities, while the sharp upward moves in US yields weighed on global fixed income markets.

Fire or Water - Opportunities in China’s structural challenges

The dragon might not be breathing fire, but turn your back at your peril, according to Iain Cunningham, Head of Multi Asset Growth.

Multi Asset Strategy Quarterly - January 2024

The MA Quarterly for the three months to December. The multi-asset team provides high level comment on the macro-economic environment, various thematic issues, the strategy, various asset classes and how they have been, and may be, affected by various factors.

Long the yen against the euro

Tight policy in Europe and very loose policy in Japan, leads us to predict a great asymmetry over the next 12 months between the two. To navigate the prospect of policy convergence, Iain Cunningham, Head of Multi-Asset Growth, explains why we are long the yen versus the euro.

Macro insights

Macro events can shape the future. Getting the direction of travel correct is a key driver of long-term investment performance, and that’s why assessing the implications of major events is crucial.

Do central banks risk ‘keeping at it’ for too long?

Throughout history, inflationary episodes have been rare. It has therefore been difficult for investors and policymakers to draw parallels of today’s experience to history.

Q3 in review

Despite significant volatility at the start of August, the third quarter of 2024 proved to be a strong one for global markets, across both equities and fixed income. This was driven by several central banks, including the US Federal Reserve and the European Central Bank, cutting interest rates, while US economic data proved to be more resilient than feared. An exception to the trend was oil markets, which saw prices fall over the period.

August in review

The month began with a sharp selloff in equities due to poor US employment data and a surprise rate hike in Japan, causing turmoil in currency carry trades. However, markets recovered as central bankers in the US and Japan signalled dovish policies, boosting global bonds and equities on expectations of aggressive rate cuts.

July in review

After a positive start to July, market sentiment soured as the month progressed on renewed China fears and some underwhelming ‘Big Tech’ earnings. Developed market equities outperformed emerging market stocks, with the latter dragged down by China. In the US, small-caps outperformed their large-cap counterparts. From a regional perspective, the UK was one of the few bright spots.

Multi Asset Strategy Quarterly - June 2024

The MA Quarterly for the three months to June. The multi-asset team provides high level comment on the macro-economic environment, various thematic issues, the Strategy itself, underlying asset classes and how they have been, and may be, affected by various factors.

The year of the ballot

Elections often move markets. This year, eight of the world’s 10 most-populous nations go to the polls in the same year for the first time ever. FX markets are often the best way to express views or hedge positions in and around elections, and FX volatility presents a source of potential alpha. We have produced this piece to help investors navigate this year. The year of the ballot.

Gold a key hedge for Trump 2.0

Iain Cunningham, Head of Multi-Asset Growth, discusses why structural trends, growing US fiscal risk and the increasing prospect of Trump 2.0 could provide tailwinds for the price of gold in the coming years.

Quarter two in review

It was a mixed second quarter for capital markets, with various election results driving up volatility. In the US, another strong run for AI-related tech stocks helped lift equity indices. In Europe, the ECB joined the growing list of G10 banks to start cutting rates; while in France, the announcement of a snap election weighed on sentiment.

US fiscal consolidation? Not in 2025

Multi-Asset team Analyst, Dan Morgan, discusses how US fiscal policy will continue to play an increasingly influential role. As investors navigate a new policymaking world, he considers what they should look out for.

May in review

May was a more upbeat month for capital markets, with most asset classes recovering from the losses of April. Although markets were more challenged towards the end of the month as global inflation data proved stickier than expected, overall investors grew more confident that rate cuts would still happen this year.

April in review

April was a more challenging month for capital markets, with numerous asset classes experiencing losses. Inflation proved stickier than expected, reducing expectations for rate cuts this year. This prompted further upward moves in US yields, weighing on fixed income assets. Emerging market equities and commodities bucked the trend, delivering healthy gains.

Capital Market Assumptions - March 2024

Ninety One’s Capital Market Assumptions framework focuses on the key drivers of long-term performance. We do this to better understand possible future returns, enriching discussions with our clients.

Multi Asset Strategy Quarterly - April 2024

Ninety One’s multi-asset team provides high level comment on the macro-economic environment, various thematic issues, the strategy, various asset classes and how they have been, and may be, affected by various factors.

Quarter one in review

The first quarter of 2024 was marked by continued strength for risk assets, with a number of major equity indices extending record highs. Economic data kept surprising on the upside, which lifted hopes that a recession could be avoided. Sharp upward moves in US yields weighed on global fixed income markets.

The geopolitical future that has already happened

The consequences of “the future that has already happened” are likely to be profound for investors, according to Sahil Mahtani, Head of Macro Research.

February in review

February was another strong month for risk assets, with several major equity indices at record highs. Improved sentiment towards China helped lift emerging market equities, while the sharp upward moves in US yields weighed on global fixed income markets.

Fire or Water - Opportunities in China’s structural challenges

The dragon might not be breathing fire, but turn your back at your peril, according to Iain Cunningham, Head of Multi Asset Growth.

Multi Asset Strategy Quarterly - January 2024

The MA Quarterly for the three months to December. The multi-asset team provides high level comment on the macro-economic environment, various thematic issues, the strategy, various asset classes and how they have been, and may be, affected by various factors.

Long the yen against the euro

Tight policy in Europe and very loose policy in Japan, leads us to predict a great asymmetry over the next 12 months between the two. To navigate the prospect of policy convergence, Iain Cunningham, Head of Multi-Asset Growth, explains why we are long the yen versus the euro.

Macro insights

Macro events can shape the future. Getting the direction of travel correct is a key driver of long-term investment performance, and that’s why assessing the implications of major events is crucial.

Do central banks risk ‘keeping at it’ for too long?

Throughout history, inflationary episodes have been rare. It has therefore been difficult for investors and policymakers to draw parallels of today’s experience to history.

Has inflation bottomed?

Jason Borbora-Sheen

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Authored by

Jason Borbora-Sheen

Portfolio Manager

Global Macro insights

Q3 in review

August in review

July in review

Multi Asset Strategy Quarterly - June 2024

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