13th April 2011

M&G: Market outlook Q2 2011

logo

Summary of outlook for the second quarter of 2011

  • Market participants appear to be changing their perceptions of risk
  • Volatility is likely to persist in all asset classes
  • However, there is significant compensation available in selected risk assets

Developments so far in 2011 have not prompted us to change our assessment of long-term valuation signals but there are suggestions that perceptions of risk are shifting among market participants. Crucially, while the risk aversion that has been part of the investment landscape since 2008 is still in evidence, the surprising resilience of global risk assets and the divergence of behaviour across markets suggest that valuation is having a more significant influence on pricing than was the case during the indiscriminate 'risk on/ risk off' environment of 2009 and 2010.
This raises a number of important issues from an asset allocation standpoint.

Click here for the full report.

 

Investments

Registration

Free Registration and CPD

Read More

Related Articles_

Rathbones Asset Management - The Sharpe End podcast: Fresh Intel

A month into Andy Burnham’s tenure as Prime Minister, the team are asking what he could possibly do to turn the UK economy and stock market around. Next, we explore the rally in software stocks, as improving growth expectations reignite enthusiasm for some names in the sector that many had written off just a year ago. Finally, this month’s stock spotlight is Intel – a company that helped build the modern technology industry and is now attempting an ambitious turnaround as a crucial beneficiary of the broad AI infrastructure build-out.

Read More

There's more to 'value' investing than valuations

Semantics matter. Words carry associations that can't always be neatly translated into a different cultural context. First impressions often determine whether investors are prepared to allocate money to an investment strategy.

Read More

Business Sentiment Tracker: Business confidence falls in Q2 2026

Business confidence has weakened in the second wave of YouGov's quarterly Business Sentiment Tracker, with businesses becoming less optimistic about the economy, their industries, and their own prospects.

Read More

Login

Not yet registered?

Please complete this form to join our community

Name
Email
Company
Select your role:
Password
Confirm Password