BNY Mellon Investment Management chief economist Shamik Dhar looks at key macroeconomic drivers which could buoy fixed income markets in the years ahead.

It’s been a tricky couple of years for parts of the alternatives sector. Higher interest rates saw capital flow towards the bond market instead, while many pension funds offloaded alternatives as they de-risked portfolios. But is now a better environment for real assets? Newton head of mixed assets investment, Paul Flood, discusses.

The economic impacts of deglobalisation, normalizing interest rates and the return of inflationary pressures are all factors which could provide an improving outlook for value investors, says Newton Investment Management1 deputy head of equity income and portfolio manager John Bailer.

Lately, non-U.S. equities are outperforming the U.S. Is U.S. exceptionalism dead? Productivity growth tells a more positive story.

In this edition of Market Watch, Shamik Dhar, Chief Economist at BNY Mellon Investment Management, explores the persistent theme of divergence from 2023 continuing into 2024. Dhar delves into facets, including the weakening US labour market and geopolitical tensions around the Red Sea, that might mitigate the potential for a US soft landing.

While some fear the S&P 500 is too concentrated in its top 10 stocks, our analysis tells us something different.

In this video, Newton head of mixed assets investment Paul Flood reiterates why, in the wake of Donald Trump’s ‘Liberation Day’, he thinks it’s about time in the market rather than timing the market.

In this week’s Market Watch, Shamik Dhar chief economist, BNY Mellon Investment Managementdelves into the comparative market and economic performance of the United States and Europe. Dhar underscores four pivotal factors contributing to the superior performance of the United States, namely consumer robustness, fiscal policy, global interdependence, and fluctuations in international trade behavior. 

In this video, Newton global income portfolio manager Jon Bell considers some of the forces shaping global equity markets 100 days into Donald Trump’s second tenure as US president.

Newton’s Jim Lydotes thinks shareholders have been overlooked by certain companies in recent years, but he says some sectors are leading the way in terms of capital discipline, enabling them to pay dividends.

It is an important week for the UK with both inflation rates and the Bank of England policy decision coming out on Thursday. In this week’s Market Watch Shamik covers gilt yields, interest rate levels, mortgage rates and the possible repercussions these may have on the economy.

Newton portfolio manager Janice Kim discusses the mixed asset team’s current thinking around the shifting macroeconomic and geopolitical backdrop.

Walter Scott client investment manager Murdo MacLean outlines how disruption is part and parcel of investing. Not every theme is investable today, however he sees attractive opportunities in companies with long-term horizons that can weather, and indeed benefit from, disruptive forces.

In this video, Walter Scott client investment manager Murdo MacLean discusses a trip to Japan undertaken by members of the research team. Find out what they learned.

Higher interest rates are here to stay but that is not necessarily a bad thing, according to BNY Mellon Investment Management chief economist Shamik Dhar. In fact, investors should embrace resulting volatility as it is likely to create asset allocation opportunities, he says.

High valuation and concentration risks appear to be driving an ongoing shift in equity market leadership, signalling a potential change in the dominant sectors of the market, argues Newton portfolio manager Jon Bell.

Following the fastest, most aggressive rate hikes seen in a generation, Real Return manager Andy Warwick believes we’re in for a decade of price instability, heightened geopolitical risks and volatility. But investment opportunities remain.