Navigating risk through late-cycle squalls

Market correction becoming more inevitable

The adage that no news is good news may seem particularly apposite in the fixed income markets just now, writes Charles Diebel, head of fixed income at Mediolanum Asset Management.

A strong Q1 performance by risk assets has been propelled by the recent dovish switch by central banks, with the Federal Open Market Committee (FOMC) confirming they are prepared to be patient in any further rates rises with only one forecast for 2020 in the central expectation. This, in turn, is joining with geopolitical and other factors to increase anxiety levels among investors about the macro outlook, and which increases the likelihood of an outsize reaction, or even overreaction, to any bad news that may emerge.  Best and worst-performing funds over ten years of QE For in...