China is down some 17% so far this year – a serious concern for EM investors, given it accounts for 30% of the MSCI Emerging Markets index China has exerted a major drag on emerging market indices over the past two years. First, state interference in its high value internet companies pushed markets lower, then…
Fund managers discuss where they are finding the most attractively-valued stocks Since Warren Buffett got involved, the world has gone crazy for Japan. The Nikkei is up 23.4% for the year to date (to 10 July 2023). That puts it 8.8%, 11.2% and 25.8% ahead of the S&P 500, Eurostoxx 50 and FTSE 100 respectively.…
Geopolitics has knocked inflation off its top spot in the list of European family-office major concerns, according to new research from UBS. Although recent inflation numbers – and the associated likelihood of interest rates remaining higher for longer – make worrying reading for many investors, new research from UBS shows inflation falling to third place among the…
While the market can famously remain irrational longer than investors can remain solvent, analysis suggests this growth rally is thinly supported Having largely given up on organic intelligence, investors have grown all excited over its artificial offspring. As a result, the (mainly US) stocks linked to AI have raced away from the broad market this…
Some element of ‘chip war’ would appear to be brewing between China and Europe. The Chinese government has announced that companies exporting gallium and germanium – both vital in the production of computer microchips – will now require an export licence. This comes a week after Dutch firm ASML was hit with new export controls…
In the face of the excitement surrounding the prospects for artificial intelligence, the market needs to do its homework on potential risks and rewards At the end of last year, plenty of experts were calling time on the decade-long technology rally. Its valuations couldn’t be sustained in an environment of higher interest rates, they said,…
Corporate bond yields may look superficially attractive but, writes Cherry Reynard, this is a time to identify the strongest credit manager available The high yield market is in an odd position. On the one hand, there are clear and mounting signs of corporate distress – bankruptcies and defaults are rising and many companies are feeling…
2022 was hailed a year of revival for value strategies, but they have been comprehensively outpaced by growth strategies to date in 2023. The MSCI World Growth index has beaten the MSCI World Value index by around 14% since the start of the year, with weaker commodity markets, economic weakness and the banking crisis all…
Geopolitics and shifting supply chains are changing the landscape for the world’s emerging economies – and those who invest in them Emerging markets were notable beneficiaries of globalisation. Their strength as low-cost manufacturing hubs brought new capital and influence and helped many developing economies kick-start their growth. Against this backdrop, it stands to reason they…
Recent market events add conviction to the argument that favourable entry points are emerging for REITs Late last year, we wrote a report arguing an attractive entry point was emerging for real estate investment trusts (REITs). Recent market developments have added further conviction to this view, with four key factors underscoring our analysis. First, commercial…
Value strategies have been comprehensively outpaced
US lawmakers may have been locked in White House meeting rooms trying to thrash out a deal, but the consensus among investors has been that the debt ceiling problem will be resolved in the end. That sunny optimism took a small hit on Friday as Republican negotiators walked out of the talks, accusing Democrats of…
