The US Federal Reserve has raised its benchmark interest rate against a backdrop of high inflation and concerns about the geopolitical situation stemming from events in Ukraine. While markets have previously taken rate-hike cycles in their stride, this time could be different, as the Fed seems to be more hawkish than initially expected. Investors should actively seek out relative-return opportunities.
The results of the Bundestag elections kick off a potentially extended period of negotiations to form a new government. The parties differ on topics such as fiscal policy and climate change that will be critical to those discussions and the final shape of Germany’s government.
Investors increasingly want to use their capital to achieve an environmental and social impact while generating a return, and impact investing offers a solution to these twin goals. It represents a fast-growing and important asset class that facilitates positive change for the planet while resonating with a growing investor base.
To understand current developments in China, it’s important to see how the country is now emphasising not just economic power, but the “soft” power of persuasion and influence. The key for investors is to learn how and where these strategic priorities will translate into opportunities.
Although recent news out of China has understandably unsettled the markets, we don’t think it changes the long-term investment case. Volatility goes hand in hand with China’s higher long-term return potential. Understanding the dynamics at play can help make these changes easier to take in stride.
The US experienced its worst recorded drought in decades this summer. At its height, the unprecedented aridity extended across more than two-thirds of the continental area of the United States, with its most severe manifestations in the Southwest, but also extending to Oregon, Washington and North Dakota.