Building up capital

9 May 2019

What's new in the financial markets?

Thierry Masset

Chief Investment Officer ING Belgium

Thierry Masset, Chief Investment Officer reviews the economic and financial news. Every month, he analyses events that have impacted the financial markets. The context of any potential stock market fluctuations is equally scrutinized. You can find this market analysis and ING's investment strategy by consulting our "Monthly Market Review".

Tiger Woods and equities on the roof of the world
  • You wouldn’t be able to tell by looking at this year’s equity rally and the collapse in volatility, but investors are positioned for “secular stagnation”…
  • … as they are chasing the equity rally by shifting toward less risky plays such as defensive stocks, cash and bonds.
  • That indicates a lack of conviction in the sustainability of the rebound…
  • … as the two main “tail risks” of a trade war and a slowdown in China are keeping a lid on their growth expectations,…
  • … even if global central banks’ dovish turns have buoyed equity valuations.

Watching Tiger Woods winning the Masters again or equities recording new peaks (in euro) can tell one thing: comebacks are possible. The MSCI World index (+17% since the beginning of the year), which includes both emerging and developed stock markets, has wiped out the losses recorded during the last quarter of 2018 and is now 2% above its 2018 highs. A jump of 7% (in USD) in world junk bonds and an eye-watering 45% surge for oil (WTI) are among other stand-out statistics. Add up all the green and the nervousness makes sense: these kind of gains, at this kind of pace, by their nature sow the seeds of instability and doubt.”

Read the full "Monthly Market Review" .

Want to know more?
Discover our previous issues :
Date Title Link

March 2019

The disconnect between bonds and stocks is coming back

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Februari 2019

A V-shaped recovery

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January 2019

On the dark side of a late-bull market

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December 2018

2018 the hardest year to invest

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November 2018

The corporate earnings growth may be peaking

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October 2018

It is not « La Dolce Vita » on the financial markets

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September 2018

Volatility is set for a comeback

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August 2018

Equity markets

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July 2018

A disastrous G7 summit

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June 2018

Cycle is maturing but not ending

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May 2018

Markets struggle on geopolitics

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April 2018

9-year-old bull market is not dead

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March 2018

Earnings boom means equity optimism makes senses

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February 2018

A "gradual approach" to raising interest rates

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