Building up capital

1 March 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".

A V-shaped recovery
  • When the Fed Chairman Jerome Powell indicates greater willingness to be patient before tightening monetary policy again and, even more important for markets, signals that he is flexible on the path for reducing its balance sheet, there is a reason to follow the old maxim of “don’t fight the Fed.”
  • But what investors seem not to be discounting is that the more volatility declines and talk of complacency heats up, the more inclined the Fed might be to raise interest rates, maybe not this quarter or the next, but possibly in the second half of the year.
  • Furthermore, global political uncertainty at record level, disappointing manufacturing activity, weaker earnings growth, and lower consumers and fund managers confidence are sufficient reasons for not chasing the rally in risk assets, particularly in areas vulnerable to growth downgrades, geopolitical risks or sudden shift in supply/demand dynamics.
Charging Bull

Charging Bull

“Money managers surveyed by Bank of America Merrill Lynch aren’t convinced by the new-year equity rally and prefer cash to stocks. Their global equity allocations in February fell to the lowest level since September 2016 and their cash allocation is the highest since the 2009 financial crisis, even as the MSCI All Country World index is up almost 10% (in euro) in 2019. That indicates a deep lack of conviction in the sustainability of the rebound among traders!”

Read the full "Monthly Market Review" .

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

December 2018

2018 the hardest year to invest

icon pdf

November 2018

The corporate earnings growth may be peaking

icon pdf

October 2018

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

icon pdf

September 2018

Volatility is set for a comeback

icon pdf

August 2018

Equity markets

icon pdf

July 2018

A disastrous G7 summit

icon pdf

June 2018

Cycle is maturing but not ending

icon pdf

May 2018

Markets struggle on geopolitics

icon pdf

April 2018

9-year-old bull market is not dead

icon pdf

March 2018

Earnings boom means equity optimism makes senses

icon pdf

February 2018

A "gradual approach" to raising interest rates

icon pdf