Market Commentary

Inflation is one of the most detrimental forces facing investors as it erodes the real returns of your investment. Inflation linked bonds can be used to eliminate the risk of inflation, however recent performance in bond markets, coupled with interest and inflation rate expectations, have led to investors questioning their added benefit within a portfolio.

As the world moves towards net zero carbon emissions and renewable energy sources, liquefied natural gas (LNG) may be the ‘clean’ fossil fuel that’s best placed to help us transition to a carbon-free future.

My latest blog discusses the market implications of a falling Pound Sterling relative to the US Dollar and how this affects UK-based investors. Both the benefits and drawbacks of this particular exchange rate movement are discussed as well as the effect it has on equity and fixed-income markets. This piece also highlights ebi’s stance on hedging currency risk.

This blog looks at why investors may prefer gaining greater exposure to assets listed in their home country as opposed to overseas. It looks at the causes and possible effects of taking this investment approach.

This blog discusses the benefits of implementing and staying true to investing passively in emerging market equity. Both empirical evidence and key factors such as fee disparities, holding periods, and fund manager skill level are compared for emerging market equity strategies that use an active approach and passive fixed-income approach. The blog ends by stating ebi’s position on emerging market equity and their beliefs.

Don’t jump on the bondwagon

The recent economic environment has not been supportive for global equities and massive headwinds have come from growth concerns, inflation and volatility. The massive sell-off in equities is making investors ask the question – is now a bad time to buy shares, or are there opportunities to be had while others are fearful? This blog will look at the usefulness and efficiency of market timing.

Central Banks face a difficult predicament in trying to reduce inflationary pressures in their respective economies whilst also alleviating the probability that these economies do not face a prolonged period of negative GDP growth which could lead to a recession.