BMO Global Asset Management offers complete investment advisory solutions and multidisciplinary asset management strategies to institutional investors, consultants, wealth advisors and their clients. At BMO Global Asset Management, we believe better conversations lead to better outcomes. It’s why we share direct access to the insights and conversations our investment teams have to build high quality portfolios that address the investment needs and outcomes our clients seek. Visit BMO Global Asset Management’s Viewpoints for our latest insights. Subscribe to get insights from BMO Global Asset Management delivered directly to your inbox.
June 13, 2019
Election fever hit India and Australia in May. The former, the largest democratic election in the world, resulted in a comfortable win for the incumbent – Narendra Modi and his Hindu Nationalist Party (Bharatiya Janata Party). Mr. Modi comes from a humble background and this appears to have resonated with millions of voters aspiring to a similar uplift in fortunes.
June 6, 2019
The market sentiment decline in May was largely driven by the ongoing trade dispute between the U.S. and China. After expectations of a near term resolution had buoyed markets in April, these hopes faded in May.
May 30, 2019
Markets just got a wake-up call on trade that interrupted their pleasant dreams of recovery from late last year. Aggressive U.S.-China negotiations have now escalated to an outright trade war, with significant tariff levies on both sides, and more threatened. Reports of Chinese flexibility on technology transfer and intellectual property violations have given way to accusations of U.S. “blackmail,” vows to never give ground on China’s “core interests,” and greater importance placed on bilateral deals with Europe.
May 23, 2019
The IRS recently altered course and announced that it will no longer stop employers from offering retirees a lump sum payment in exchange for their pensions. Initial reactions have been that this is very bad — comparing lump sum cash-outs to cigarettes — legal, liked and bad for you.
May 9, 2019
The IMF commented that its global growth outlook “reflects a combination of waning cyclical forces and a return to tepid potential growth in advanced economies; a precarious recovery in emerging market and developing economies, driven to a great extent by economies currently experiencing severe macroeconomic distress; and complex factors that shape the prospects for potential growth in both groups… the possibility of further downside revisions is high, and the balance of risks remains skewed to the downside.” We have heard that language before.
May 2, 2019
The International Monetary Fund (IMF) lowered its global growth outlook for 2019 to 3.3% from 3.5%, while noting it believed “the balance of risks remains skewed to the downside.” For 2020 though, the IMF expects an improvement of growth to 3.6%. Euro-area GDP grew more than expected in the first quarter at 0.4% and 1.2% for the trailing year. Unemployment in the Eurozone declined 0.1% to 7.7% in February. However, other data such as manufacturing PMI declined to 51.3 in April from 51.6 in March.
April 25, 2019
It’s very hard to visit Vietnam and not get excited about the opportunity. Looking at the country today, there are many similarities with China 15 years ago. Indeed, the rate of development in Vietnam since it opened up to the world in 1990 is almost identical to the first 18 years of China’s growth post 1977. But the similarities go well beyond the growth rates.
