Should Investors Boost Their Exposure to US Small Caps, in Light of Recent Economic Policy and Geopolitical Developments?
We don’t believe so. US small caps have benefited from cyclical tailwinds this year, including strengthening US growth and their more domestic orientation (helpful as the dollar strengthens and trade frictions increase), with small-cap earnings estimated to grow twice as fast as large-cap earnings in 2018.
July 2018
Will the Addition of Chinese A-shares to MSCI’s Global Indexes Trigger an A-Share Rally?
No, MSCI index inclusion will not trigger a bull market in Chinese A-shares.* Given the very modest initial weights and the lack of clarity on future increases, we doubt that index-driven flows will drive share prices meaningfully higher.
June 2018
Are Inflationary Pressures in the United States Building?
Yes. Inflationary pressures in the United States appear to be building, as positively trending wages, expansionary fiscal policies, and protectionist trade barriers feed into a humming economy.
March 2018
Should US Equity Investors Fret About Rising Yields?
Not in the near term. The current environment of rising, but low, interest rates accompanied by strong earnings growth expectations is supportive for equities.
March 2018
Should Investors Be Concerned that the Number of Listed US Stocks Has Dropped by Half Since 1996?
No. The US public equity market remains the largest and most liquid in the world and continues to offer a robust opportunity set for investors.
February 2018
With the Recent Surge in Volatility, Should Investors Modify Their Asset Allocation or Exit Systematic Strategies
No, most investors should sit tight. The persistence of strong corporate and macroeconomic fundamentals in the face of the recent sell-off and spike in volatility strongly suggests that the duration of the market rout should be limited.
February 2018
Is the Environment for Active Management Improving?
We are asked this question on a regular basis, but believe it is fundamentally the wrong question for investors to ask if they are seeking to outperform the market over the long term.
February 2018
Is the Recent Concentration of US Equity Performance in a Small Number of Stocks a Cause for Concern?
Not in our opinion. Recent market leadership by the so-called FAAMG stocks is not extraordinary relative to history, and their valuations and fundamentals, combined with this year’s relatively healthy market breadth, mean that they don’t necessarily present an outsized threat at this time.
August 2017
This website is directed and intended to be accessed by persons who satisfy any of the following criteria:
- A professional client or an eligible counterparty*
- A financial advisor or financial intermediary acting on behalf of a professional client or eligible counterparty*
- An employee or prospective employee
If you satisfy any of these criteria, please click confirm to proceed:
*As defined in the Markets in Financial Instruments Directive (Directive 2014/65/EC) as amended or updated (MiFID)
This website is directed and intended to be accessed by persons who satisfy any of the following criteria:
- A regulated financial entity*
- An institutional investor, investment professional and other entities or individuals who are qualified to operate in financial markets involving regulated financial activity as defined by its local country regulator
- An employee or prospective employee
If you satisfy any of these criteria, please click confirm to proceed:
*An entity regulated by its local country regulator which may include banks, collective investment schemes, endowments, foundations, investment managers, insurance companies, pension funds and intermediaries
This website is directed and intended to be accessed by persons who satisfy any of the following criteria:
- A professional investor*
- A financial advisor or financial intermediary acting on behalf of a professional investor*
- An employee or prospective employee
If you satisfy any of these criteria, please click confirm to proceed:
*As defined in section 1 of Part 1 of Schedule 1 to the Securities and Futures Ordinance as amended or updated ("SFO")
This website is directed and intended to be accessed by persons who satisfy any of the following criteria:
- An institutional or accredited investor*
- A financial advisor or financial intermediary acting on behalf of an institutional or accredited investor*
- An employee or prospective employee
If you satisfy any of these criteria, please click confirm to proceed:
*As defined in in section 4A(1) of the Securities and Futures Act 2001 as amended or updated ("SFA")
The information contained herein is not suitable for retail investors.
Please contact us if you have any questions: [email protected]
If you clicked decline in error, please click here