Will the Global Equity Rotation from Growth Stocks to Cyclicals Persist?

Yes, we expect it will. We anticipate global inflation expectations will remain stable or increase modestly amid rising economic growth, which would allow the equity market rotation into cyclicals to continue.

May 2021

VantagePoint: Reflation, Inflation, or More of the Same?

In this edition of VantagePoint, we review the drivers of inflation globally and conclude that widespread inflation concerns are likely overdone. For investors concerned about the risks of inflation, we refresh our analysis on the complex relationship between asset classes and inflation and dig deeper into the implications of higher inflation on equities.

April 2021

Does 2021 Look Like a Good Year for Active Equity Managers?

Active equity managers tend to perform better when the average stock within a market capitalization–weighted index outperforms the index itself.

April 2021

Is It Now Growth at Any Price?

In private investing, it appears that way, but a deeper look suggests there could be a method to the valuation madness.

March 2021

Brexit Update

The historic milestone reached when the white smoke emerged from Brussels and London on 24 December 2020 represents the end of the beginning in the establishment of the new relationship between the UK and EU, rather than an end in itself. Nonetheless, with the lingering threat of a tumultuous no-deal exit now removed, the headwind that this represented to the performance of UK assets has now subsided.

February 2021

Are Hedge Funds at Risk from Retail-Driven Disorder in Equity Markets?

No, we do not believe that is generally the case. While the recent wild ride of a few companies’ share prices was novel in that it was coordinated by retail investors on the social media platform Reddit, the short coverings that contributed to the price spikes were all too familiar to long-time investors.

February 2021

Should Investors Be Concerned About the Degree of Concentration in US Equity Markets?

Yes, because rising concentration reflects rising valuations for the largest stocks, which are likely to serve as a headwind to index returns. Further, the growing market share of these companies increases the potential for rising regulatory oversight.

February 2021

Playing Defense in a Low-Rate Environment

Investors have predominantly relied on developed markets sovereign bonds for defense in balanced portfolios, but low rates have diminished their diversification characteristics.

January 2021