Bonds, bullets and barbells – what happens after yield curve inversion?
While there is no single ‘right’ approach for extending portfolio duration, there are two basic ways to consider as a starting point. For example, an investor may use a barbell approach, allocating 50% to cash and 50% to an intermediate or long-duration fixed income strategy. Conversely, the investor could choose a single investment offering a […]
Hang Seng soars as China sentiment shifts
market snapshot
Korea discount: a dream deferred?
Fast reading In our opinion, the ‘Korea discount’ has deprived investors of returns, in many cases leaving them impoverished relative to the growing value of the very companies into which they have invested. We believe it has also raised the cost of capital for South Korean enterprise, reduced risk-taking and economic activity, while undermining innovation. […]
15 for 15: A US SMID retrospective
When did you join Federated Hermes and what were you doing before? Initially qualifying as an accountant with PwC, I joined Hermes (from the Rio Tinto pension scheme) to focus on European small- and mid-cap companies in 2005. I transitioned to the US small- and mid-cap team in 2009, taking over as Lead Manager in […]
US and Europe on divergent rate cut paths
market snapshot
China: The unloved trade
market snapshot
Markets soar on summer rate cut hopes
market snapshot
Politics and the investor
Whichever way you cut it, 2024 will be a testing year for some of the world’s biggest democracies. Seven of the world’s ten most populous nations will go to the polls, accounting for a third of global GDP and a quarter of its population (see charts and table below). In May, India’s billion-strong electorate will […]
Six reasons to consider an unconstrained approach to credit
Reason 1: Investors with the ability to manage duration can accommodate even a higher-for-longer scenario Consensus expectations see developed market CPIs coming close to target in 2024 as tight monetary policy constrains activity, unemployment slowly picks up and labour market pressures cool. Developed-market central banks have indicated they see themselves at the peak of the […]
The stars (and stripes) align: The overlooked appeal of US SMID
Fast reading While about one third of the S&P 500 is accounted for by the ‘Magnificent Seven’, the Federated Hermes US SMID Equity team have 2500 stocks to choose from (from the Russell 2500 Index) and no single group that dominates. US SMID companies – with a market capitalisation of between US$1bn to US$15bn – […]
