Allianz's CIO Macdonald: As rates normalise so should volatility

clock • 2 min read

Global equity markets are closing in on the tenth anniversary of the global financial crisis.

Since the trough in February 2009, global equities have delivered robust annual double-digit returns with very low volatility.  Equity investors who held the faith during those fragile times have been well rewarded. However, as the drivers of these strong returns wane this year and next, flatter returns and rising volatility are likely. The drivers of the strong equity returns have been robust liquidity, strong earnings growth and revaluation. Liquidity has been supported by exceptionally low interest rates and quantitative easing. We are already some way through the gradual normal...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Global

Investment Week launches Geographical Equities Conference 2024

Investment Week launches Geographical Equities Conference 2024

Allianz Global Investors, Downing, EdenTree and Royal London Asset Management among speakers

Investment Week
clock 15 January 2024 • 2 min read
Moody's downgrades China sovereign credit outlook to negative

Moody's downgrades China sovereign credit outlook to negative

Retains A1 rating

Elliot Gulliver-Needham
clock 05 December 2023 • 2 min read
ECB warns high rates are pushing economy towards fragility

ECB warns high rates are pushing economy towards fragility

‘Early signs of stress’ in banks

Elliot Gulliver-Needham
clock 22 November 2023 • 2 min read
Trustpilot