GAM's Active Thinking 05 May 2023

The world is in the midst of a nature crisis that cannot be ignored. GAM Investments’ Stephanie Maier considers the intrinsic link between nature loss and climate change and explores what financial decision makers across the world can do to tackle the systemic challenge of nature loss and degradation.

After a decade of strong growth for technology companies which saw them allot significant resources to new projects and people, they are beginning to scale back. Kevin Kruczynski examines how this new focus on profitability may benefit the sector.

Andrea Quapp , Investment Director for Multi Asset Client Solutions (MACS) Continental Europe, explains why the tension between inflation, interest rate peaks and acute recession risks can be a constructive environment for investing, despite numerous risks. In the bond market, higher default rates loom for bad debtors, but opportunities beckon in high yield bonds. Equity markets are still benefiting from better-than-expected quarterly results, although the environment is becoming somewhat gloomier.

Nearly 16 years ago on the eve of the Global Financial Crisis (GFC), the Federal Funds Rate stood at 5.25%. That is a long time in investment circles and it is a little disquieting that we find ourselves now back at that same rate level after one of the most aggressive hiking cycles by the Federal Reserve (Fed) in many decades.

In contrast to the Federal Reserve’s (Fed) implication yesterday that it is close to, if not at the end of, its hiking cycle, Madame Lagarde at the European Central Bank (ECB) said it is not done yet...

For more expert insights visit our website gam.com/our-thinking.