Value has outperformed Growth since late 2020. However, this recent outperformance is a drop in the ocean compared to the huge underperformance of Value investing since 2007 and in the context of Value’s strong long-term returns. J.P. Morgan Asset Management’s new article explains why they believe Value’s potential for future returns remains great. Valuation spreads between Value and Growth are still extreme and flows back into Value strategies could provide a significant tailwind. Value also tends to outperform when inflation and interest rates are rising, and recently, earnings for Value stocks have surprised to the upside, while many Growth stocks have disappointed on expectations.
Social issues, if left unaddressed, can have a detrimental impact on investment returns. Yet social factors are less well known to many sustainable investors compared to environmental and governance factors. Head of EMEA Funds, Massimo Greco spoke to Global Head of Sustainable Investing, Jennifer Wu and Investment Stewardship Specialist, Minal Dave, to find out why investors are now paying more attention to the “S” in ESG.
Sustainability is now a key consideration when it comes to assessing financial performance and investment risk. Attractive environmental, social and governance (ESG) opportunities are emerging across all asset classes. Our chief investment officers for equities and fixed income, and our global head of alternatives, share their latest thoughts on how sustainability is shaping global markets.
Taking a patient, long-term approach to investing can help investors overcome the short-term volatility that is normal in markets. In this article, J.P. Morgan Asset Management explain their latest research into long-term investing.
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The clean tech transition to renewable energy and electric vehicles will generate an enormous increase in demand for critical commodities. Tilmann Galler, Global Market Strategist, explores how this new commodity supercycle could underpin a secular shift in the global economy and an equally seismic rotation in equity markets from growth towards value companies. |
Investor demand for sustainable investment funds that incorporate environmental, social and governance (ESG) factors is expected to grow sharply once again this year. Here are five reasons why we believe ESG investing is much more than a short-term fad.
In the first two parts of this series we outlined how continued supply problems and tight labour markets point to lingering inflation in the developed world. To be clear, we do not expect inflation to continue heading north. Headline inflation may have peaked – or will do so over the spring – and from there, base effects from higher energy prices will allow inflation to moderate. But we do believe the pandemic has dislodged us from the stubbornly low inflation that characterised the last cycle.
In the second of this inflation mini-series we take a closer look at what is going on in the developed world’s labour markets. The supply chain problems discussed in part 1 may linger for some months but whether this turns into a lasting inflation problem depends on the jobs market. If workers are able to bargain for higher wages in the face of rising living costs then this has the potential to feed a wage-price spiral and medium-term inflationary pressure.
In this article Paul Quinsee, Global Head of Equities, discusses how even before COP26, the relevance of sustainability has been increasingly obvious to governments, companies, consumers and investors. Building a more sustainable world is both an urgent task, with the increasing focus on decarbonisation goals by 2030, and a long-term one that will span decades.
The outlook for inflation is the most important call for asset allocators this year. This paper is the first of a three-part series on the causes of inflation, and its consequences for investors. In this paper we look at the supply side problems that have caused a spike in goods prices and question how quickly they will fade. Next week we will discuss why the labour market is pivotal in the inflation debate. Finally, we will consider the options available for investors to protect their capital.
COP26 saw significant announcements in areas such as coal, methane and deforestation, yet progress fell short of the scale required to give us confidence that disruptive climate outcomes can be avoided. Physical climate risks warrant careful consideration for long-term investors.
With UK shares looking cheap, long-term investors may be able to pick up a bargain in the UK stock market this year. Explore our outlook for UK equities.
This paper is written by Tai Hui and Hugh Gimber, discusses the major challenges faced by China equity and fixed income market, and their investment implications.
Huge Gimber, Global Market Strategist, and Tai Hui, Chief Market Strategist, Asia Pacific, explore the investment implications of recent Chinese policy interventions.
Explore how the fiscal stimulus provided by the EU's pandemic recovery fund could lead to stronger economic growth and boost demand for European assets.
Will this year’s value rally continue, or are growth stocks set to regain the initiative? In our latest On the Minds of Investors article, Global Market Strategist Tilmann Galler examines the basic drivers of value outperformance, and looks at how value stocks may perform in three near-term economic scenarios based on our latest projections.
The EMEA Market Insights team expects a Covid-19 vaccine to lead to a robust recovery as 2021 progresses. Find out about the investment implications and the risks to this view.
Could carbon prices be about to rise? Market strategist Vincent Juvyns looks at the increasing regulatory pressures on carbon pricing, and assesses the potential impact on markets
With recovery supported by loose monetary and fiscal policy, Global Market Strategist Jai Malhi asks whether the balance of risk has shifted towards higher inflation.