Peak growth has likely passed warns Bank of America

Risk assets have already recovered faster than in previous recoveries

clock • 3 min read

The first year after the pandemic has outpaced most other recoveries of the past 50 years, according to the Bank of America’s asset allocation analysts, and risk assets have already recovered in one year what it has taken two years in previous recoveries.

It comes as the analysts warned that peak growth may have already passed, following an astonishing recovery from the Covid-19 pandemic. They said: "We note that outside of the periods following 1980 and 2001, risk assets have performed in the first two years following troughs in US GDP, posting positive information ratios for equities, credit, and commodities. "More interestingly, while we are only a little over a year into the current recovery, risk-adjusted returns for equities and commodities, and yield changes for credit are already well above those in any of the previous episodes...

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 Investment

Stories of the Week: Shareholders approve LGIM property fund restructure; FCA issues warning notice to Neil Woodford; US inflation spike

Stories of the Week: Shareholders approve LGIM property fund restructure; FCA issues warning notice to Neil Woodford; US inflation spike

LGIM; FCA; US inflation: The biggest stories from the world of investment and asset management this week

Sarka Halas
clock 12 April 2024 • 1 min read
Partner Insight: Is there opportunity for high yield in today's new economic era?

Partner Insight: Is there opportunity for high yield in today's new economic era?

High-yield investors face a challenging backdrop, but attractive opportunities are starting to emerge amid the ongoing uncertainty, says Wellington Management’s Konstantin Leidman.

Sarka Halas
clock 09 April 2024 • 2 min read
Friday Briefing: Shareholders are taking the gloves off in this year's AGM season

Friday Briefing: Shareholders are taking the gloves off in this year's AGM season

Friday Briefing

Eve Maddock-Jones
clock 08 April 2024 • 5 min read
Trustpilot