Global Investment Matters – 2015
After a strong run in equities and bonds over the past few years, we came into 2014 expecting moderate returns from equities, and noted bonds still provided selective upside.
Volatility remained low for the majority of the year, but this masked an underlying shift of economic realities, and a growing economic and political fragility. To a degree this fragility manifested itself during a turbulent final quarter, with important changes in capital markets, such as the decline in developed market bond yields, oil price falls, the strengthening US dollar and emerging market underperformance. This pattern of periods of apparently calm capital markets being punctuated by periods of substantial market changes illustrates the continuing challenge for investors seeking to build a robust investment portfolio, with strong long-term returns.