Investors are desperately hoping for a return to normal markets, which would mean the end of the risk-on, risk-off paradigm. Risk-on, risk-off – which sees the price of pretty much all asset classes move together – has retreated a little, but is still a force in global markets.
One example is the global flow of money out of havens. Today’s video and column highlights one aspect of that: the rise in the US bond yield above that of neighbour Canada, as investors shift from the safety of US Treasuries to prefer the growth prospects further north. Rather than going away, this is typical of the risk-on phase of the risk-on, risk-off cycle. Read more
James Mackintosh is the Financial Times' Investment Editor, writing and presenting the daily Short View column and video. In 16 years at the FT his posts have included comment editor, motor industry editor and hedge funds correspondent, as well as spells in the Parliamentary lobby and Paris. He was the first reporter hired for FT.com, joining two weeks before it launched.
John Authers is the Financial Times' Senior Investment Columnist, writing the Saturday Long View and a regular Monday column. In a 22-year career at the FT, his previous posts have included global head of the Lex column, investment editor, US markets editor, Mexico City bureau chief and US banking correspondent. His latest book is The Fearful Rise of Markets. 