VantagePoint: The Bear Awakens
March 18, 2020—The bear has finally come out of his long hibernation, causing us to dust off our playbook for weathering bear markets.
Showing 21 - 30 of 127 results for ‘covid’
March 18, 2020—The bear has finally come out of his long hibernation, causing us to dust off our playbook for weathering bear markets.
Nominal high-quality sovereign bond yields throughout developed markets have plummeted toward zero, increasing the likelihood that most developed markets may soon need to contend with negative yields, and leading investors to question whether high-quality sovereign bonds are still the best form of insurance. In light of these developments, we examine the historical safe-haven characteristics of high-quality sovereign bonds and assesses whether they remain a viable safe-haven asset.
Yes, we believe value stocks can resume their leadership relative to the broad market over the next six to 12 months, provided we are correct in our assessment that the economic impact of COVID-19 Delta variant will be limited in major developed markets and China.
We don’t think so, as the markets are pricing in more severe conditions than we believe are warranted. The MSCI China Index, which tracks Chinese stocks listed in both Hong Kong and the United States, has sold off sharply thus far in March and is down roughly 25% year-to-date, and over 50% from its February […]
March 3, 2020—The US Federal Reserve cut its policy rate by 50 basis points today, highlighting the serious challenges facing the global economy. Still, we don’t believe investors should cut risk. Very few have an informational edge regarding COVID-19’s market impact, and investors could be left underexposed when and if markets rebound.
March 13, 2020— This week, the Bank of England and the European Central Bank both announced stimulus measures aimed at responding to the growing impact of COVID-19.
It has been difficult to find a more out-of-favor sector in institutional investors’ portfolios than energy over the past five years, and with the recent spread of COVID-19 reducing demand for oil & gas, that reality appears set to continue – creating both challenges and opportunities. Amid the sector’s ongoing evolution, the energy PE investment strategy that dominated the market has become outdated, and investors who wish to capitalize on potential opportunities in this market must re-think their approach.
Yes, but the opportunity set is currently limited. To date, the large amount of government stimulus and lax credit enforcements, the differentiated impact of COVID-19 on real estate sectors, and the challenges associated with valuing assets have worked to keep broad-based distress at bay for now.
In 2021, the Cambridge Associates LLC Developed Markets (ex US) Private Equity and Venture Capital (PE/ VC) Index returned 33.4% in USD terms, equaling its strong performance in 2020. Because the index’s return is measured in US dollars, the currency’s value vis-à-vis the euro impacts its performance. The US dollar gained significant value against the […]
What a difference a couple of months makes. Economic conditions have improved since year-end 2022 due to the heady brew of China lifting its zero-COVID policy, Europe navigating its energy crisis better than anticipated, and cooling inflation in the United States. In early February, an exceptionally strong US labor report and a sharp rebound in […]