Is China Targeting Foreign Investors Amid the Tech Crackdown?
No. While the ongoing regulatory crackdown on technology companies in China is unsettling markets, it is not specifically targeting foreign investors.
July 2021
VantagePoint: Can Value Outperformance Endure?
In this edition of VantagePoint, we explore the historical drivers of the value risk premium to determine if there have been any fundamental changes since 2007, the start of the global financial crisis, and to understand conditions that must be present for a sustained period of value outperformance.
July 2021
Will Talk of the Fed Tapering Cause Another Bond Tantrum?
No. While the Federal Reserve’s discussion of tapering asset purchases signals a shift toward tighter monetary policy, both the Fed and markets learned valuable lessons from the 2013 Taper Tantrum; the impact on bond yields should be limited.
June 2021
Do Prospects Remain Bright for Investors in Japanese Small-Cap Stocks?
Yes. We believe the underperformance of Japanese small-cap stocks in recent years will reverse, boosted by attractive relative valuations, stronger balance sheets, and growing pressure from shareholders and regulators.
June 2021
Portfolio Protection: Challenges with Equity Put Options
We advise extreme caution in using derivatives to protect portfolios from sharp equity drawdowns. We recommend that investors look to asset allocation to defend against equity risk before buying puts. For those investors who must pursue a tail-risk hedge, we provide a list of potential pitfalls and solutions, in the form of a case study.
May 2021
US Inflation Spikes, as Expected
Today, the US Bureau of Labor Statistics released its monthly inflation report for April, which highlighted that prices paid by urban consumers for a basket of goods and services increased by 4.2% relative to the same month last year.
May 2021
Rising Rates and the Implications for Fixed Income
In this paper, we analyze the drivers behind the recent rise in yields and compare the current bond sell-off to major bond sell-offs of the past to assess whether the rise in yields can continue and the implications for fixed income.
May 2021
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