Panopanic 2018. M&G’s economic and bond market outlook

Whilst you can make some strong arguments for the negative returns from 90% of asset classes in 2018 based on the return of populist politics – think of Brexit, Italy’s political instability, AMLO’s election in Mexico and tariffs everywhere – the answer to those negative returns might be simpler: the de facto global discount rate, the 2-year US Treasury bond yield, has risen by almost 100 basis points (bps) over the year, and thus repriced global assets. Why did this happen?

For this and more, please view our 2018 review.

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

Categorised as: Panoramic Outlook

Discuss Article

  1. Ben says:

    This is a review not an outlook.

    Posted on: 14/12/18 | 11:15 am

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