Countdown to the new year: Views from the Global Equity team
Fast reading The outlook for the US appears bright, but we are cautious on the potential for consumer weakness. We are also constructive on Japan, following the election result. Our conviction in AI remains strong, although the opportunity is not without risk. 2026 will need to deliver tangible evidence that investment is translating into margin […]
Market Snapshot
Markets take a pre-Christmas breather
Beyond the Magnificent Seven: How US SMID caps are riding the AI wave
Video transcript Investor enthusiasm for artificial intelligence (AI) has surged in recent years, but much of the focus has remained on a narrow group of mega-cap technology stocks. However, we believe the transformative power of AI extends far beyond those tech giants. Across the US small and mid-cap (SMID) landscape, a growing cohort of companies […]
Wheels in motion at the Fed
Investors listen to comments by all Federal Reserve (Fed) policy leaders, but their ears prick up for only a few. Of course, the primary one is the chair. But the New York Fed president is not far down the list. While other regional bank presidents spend a limited number of years as voting members of the Federal […]
Why tokenise money market funds?
Fast reading Federated Hermes is actively collaborating with financial institutions and technology providers to explore blockchain-based distribution channels. These efforts aim to improve flexibility and accessibility without changing the underlying structure of MMFs. These innovations are particularly relevant for investors seeking faster settlement, real-time reporting, and streamlined compliance. Read More Watch now Listen now Read […]
Fiorino: CoCo confusion – the new debt-equity duality
Contingent convertible (CoCo) bonds are the ultimate ‘quantum’ capital instrument, behaving as either debt or equity depending on circumstances. Until those circumstances are defined, CoCos hold a unique position on bank balance sheets as both debt and equity – able to occupy two states simultaneously – rather like the cat in the box in the […]
Stewardship 2026 Outlook
The coming year will bring both challenges and opportunities. Artificial intelligence, the climate transition and the shifting sands of geopolitics will all play an outsize role but in 2026, investor stewardship will increasingly focus on systemic economic risks and opportunities alongside the financial performance of individual investments. For universal owners – those widely invested in […]
Where do we see opportunity in emerging markets debt in 2026?
Video transcript What’s your outlook for EMD in 2026? Despite the economic and geopolitical challenges of 2025, emerging market (EM) fixed income has performed strongly. Year-to-date, hard currency EM sovereign bonds have returned over 12%, while EM local bonds have delivered an impressive 15%1. These returns have been well-balanced between capital appreciation and a steady, […]
Black Friday sale has come early for the stock market
The stock market needed this correction to refuel the advance and wash out the speculators. Fundamentals remain strong and on target with our longer-term view of a climb toward 8,600 by late 2027. We are sticking with our substantial equity overweight and have added further to growth stocks on this correction. Key points: Correction long […]
Private Markets 2026 Outlook
The MD’s outlook Steve McGoohan Managing Director, Private Markets What significant developments for private markets could take place in 2026? Asset classes within private markets are impacted by the same macro factors as their public-market counterparts, although the method and timing of those impacts may vary. Digitisation, demographics, and deglobalisation are significant mega-trends that will continue […]
