9 May 2019
What's new in the financial markets?
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.”