What are Cambridge Associates’ clients reading today?
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Lower Leverage and Fading Stimulus Present Opportunities and Risk
The removal of unprecedented stimulus brings additional risk to global markets, and the lower-leverage environment changes the playbook for investors across many asset classes.
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Awaiting Confirmation from Fundamentals
The year 2010 will likely be a challenging one given the high expectations reflected in current market prices, uncertainties surrounding the economy and government policy, and the absence of clear signs of sustainable economic strength.
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European Equities: Average Valuations in Abnormal Times
While European equity valuations are reasonable from a historical perspective, market pricing doesn't provide much cover for risks stemming from sovereign finances and the halting economic recovery.
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Asia ex Japan Outlook: Grab the Tiger by the Tail?
While Asian economies seem poised for faster economic growth than the developed world, these superior prospects are already incorporated into equity valuations, leaving Asian equities vulnerable to near-term disappontment.
Other commentaries we’ve recently written for clients
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CA Perspectives
The spring 2010 issue of our newsletter, Expanding the Investment Horizon in a New Decade, focuses on Asian private equity, the value of real assets, and a proposed European Union directive to increase fund regulation. The newsletter also includes a profile of Longwood Gardens’ approach to investing and an interview with International Finance Corporation CIO Nikunj Jinsi on the outlook for frontier and emerging markets investing and the IFC’s role in helping to lift developing counties out of poverty. These topics are increasingly important as investors navigate a global economy. Read the firm’s newsletter
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Amid Surging Supply of U.S. Treasuries, Can Demand Hold Up?
Thus far, record issuance of U.S. Treasuries has been absorbed by a changing mix of buyers, with increased domestic participation. Treasury buyers should tread carefully in 2010, maintaining deflationary hedges while considering the potential impact of the changing supply/demand dynamics.
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What Happens When the Fed Becomes Sated?
Fed purchases of more than $1 trillion in government-related securities in 2009 have dominated the market, but a first-quarter halt to these purchases may pressure prices.
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Japan: Will the Sun Ever Rise?
Japanese equities are again oversold, unloved, and undervalued to the point where in the past the market has managed to post subsequent relative outperformance. However, it may be some months before Japanese equities decisively outperform, given the headwinds of a strong yen and uncertainty surrounding economic policy and the strength of the global economic recovery.