China’s economy has undergone a remarkable transformation over the past 70 years, catapulting the country from its predominantly rural roots to a vibrant, urbanized industrial powerhouse. After the communists took control in 1949, the state exercised tight control over the
An Insight into the Financial World's Recent Dynamics: August 2023 was marked by a rejuvenated global equities rally. As the specter of a dire economic downturn receded, there was a significant uptick in various sectors. Specifically, the S&P 500 Index
Investors aiming to value public companies often grapple with the challenge of determining the longevity and projected value of these entities. The "Counterpoint Global Insights" report explores this critical facet of investment analysis. The majority of valuation models assume companies
In Morgan Stanley’s report, “Good news, yet markets miss the point,” the main theme revolves around developed markets losing momentum after a strong start to the year. Despite receding recession risks, job data indicates a cooling labor market, raising concerns
Many investors were disappointed in 2022 when their hedge funds declined at the same time as the traditional 60/40 portfolio. The sectors like Equity Hedge and Event Driven that had been popular with investors over the past few years fared
In dit rapport met de titel "Vertrouwen, Methoden om Vertrouwen te Beoordelen onder Onzekerheid", benadrukt Morgan Stanley het belang van vertrouwen in actief beleggen. Het hoofdthema van het rapport is dat het vinden van verschillen tussen verwachte waarde en prijs
In the article, "Quality Stocks for Long-Term Holding," Morgan Stanley outlines its analysis of the current bear market and presents its best long-term picks based on the sustainability and quality of the business model, as well as the opportunity to
In January markets rebounded, providing a window of opportunity to capture returns. Towards the end of December, we began increasing risk to take advantage of this, and continued to add to risk assets during January. We see 2023 as a
The primary job of senior management is to create value over the long term. This entails taking inputs, including capital and labor, and making them worth more than their cost over time. Capital allocation, which describes how a company raises
How to Calculate ROIC and Handle Common Issues A company creates value when the present value of the cash flows from its investments are greater than the cost of the investments. In other words, one dollar invested in the business
An engineer confronted with a problem in a novel environment would be tempted to fashion a specific solution. But studies of the pattern of synaptic connections of children, as well as the emergence of industries, show that the overproduction of
Counterpoint Global Insights Expectations and the Role of Intangible Investments
Counterpoint Global Insights Markets have become more sophisticated over time as the result of the growth in institutional money management, financial innovation, and sharply lower technology costs. Large institutional investors, including …
Growth, Return on Capital, and the Discount Rate The value of a financial asset is the present value of future cash flows. If you don’t believe that, please put this aside and resume your normal daily activities. If you do
On the Markets In the past month, we've experienced a full bear market, down 20%, and a full bull market, up 20%. Of course, this extreme volatility follows a period of extreme calm, during which we observed some of the
How Dispersion Creates the Opportunity to Express Skill Having skill at an activity tends to be a good thing in life. Skill can lead to success in academia, the arts, athletics, business, and politics. But for skill to have a
As the economic, physical and human impacts of climate change mount around the world, many investors are considering related risks throughout the investment process. Morgan Stanley’s Institute for Sustainable Investing has developed a climate risk assessment framework that goes beyond
How to Reduce the Sources of Forecasting Error Anticipating revisions in market expectations is the key to generating long-term excess returns as an investor. This process requires you to understand current expectations and why they are likely to change. A
On the Markets In the last week of February, financial markets had one of their sharpest corrections in history. The culprit is growing concern that the coronavirus outbreak, which began in China two months ago, last month, has now spread
The GIC Weekly Apart from war, few market crises are as personal as this one. The collective power of fear and uncertainty is palpable, especially as the disruption to daily life seems without comparison. This market has been marked by
On the Markets Since late January, global markets have been preoccupied with the coronavirus development. Obviously, this is an unfortunate and serious health concern. While the path it takes from here is unknown, one thing we do know is that
On the Markets This past year will go down in the books as one of the best years ever for financial asset returns. In a mirror image of 2018, in 2019 nearly every major asset class had significantly positive returns
Rose-Colored Glasses. The disconnect between the economic data and what is discounted in the S&P 500 continues to grow. The stabilization we saw in September has been followed by a slew of disappointments in the October and November data. While
GLOBAL INVESTMENT COMMITTEE / COMMENTARY Sticking With It On Oct. 25, the S&P 500 Index touched the all-time high it first reached in July. However, since the old high, the bestperforming sectors have been the defensive areas of utilities, real
On the Markets As we head toward the end of the third quarter, I can’t help but think it feels very similar to last year in many ways. The S&P 500 is trading right where it was a year ago, near its all-time
Can you invest sustainably without sacrificing financial returns? Research conducted on the performance of nearly 11,000 mutual funds from 2004 to 2018 shows that there is no financial trade-off in the returns of sustainable funds compared to traditional funds, and
We assess the impact of the corporate sector purchase programme (CSPP), the corporate arm of the ECBís quantitative easing, over its Örst year of activity (June 2016 ñ June 2017). Focusing on the primary bond market, we Önd evidence of
Monthly Commentary | June 2019 On the surface, I am surprised this most recent correction was so muted:
Strong on Engagement, Low on Carbon, Built on Quality The trend toward sustainable investing has exploded over the last decade, with an estimated $23 trillion in assets under management globally.1 With our focus on high quality companies with earnings resilience,
We assess the impact of the corporate sector purchase programme (CSPP), the corporate arm of the ECBís quantitative easing, over its Örst year of activity (June 2016 ñ June 2017). Focusing on the primary bond market, we Önd evidence of
We assess the impact of the corporate sector purchase programme (CSPP), the corporate arm of the ECBís quantitative easing, over its Örst year of activity (June 2016 ñ June 2017). Focusing on the primary bond market, we Önd evidence of
Investment is backed by the general account of the insurance company Earnings will grow at the stated interest rate on a tax deferred basis. Withdrawals are taxed at ordinary income tax rates and may be subject to a 10% penalty
On the Markets Business managers are always looking for ways to maximize the value of the firm. One way to do that is to encourage everyone to think like an owner. After all, if employees are thinking like an owner
Call it superstitious, but we in Applied Equity Advisors are always uncomfortable producing our market outlook commentary for the following year until the current year is complete. Much can happen in December that could impact our projections about the coming
Anticipating Change Last week, our macro team released its 2019 outlook. Producing it requires extensive effort and debate among our strategists and economists to arrive at a cohesive and consistent view. In the end, we settled on a new narrative
Anticipating Change Last week, our macro team released its 2019 outlook. Producing it requires extensive effort and debate among our strategists and economists to arrive at a cohesive and consistent view. In the end, we settled on a new narrative
The Turning Point In 2018, a tricky handoff in growth, policy and inflation drove a rolling bear market. In 2019, we expect a larger turning point in a number of multi-year trends. EM assets should outperform.
On the Markets With the current economic expansion and bull market now among the longest on record, it’s natural to consider how this cycle could end. Given many of the headlines dominating markets this year—tech leadership and crowding, emerging markets
Global Fixed Income Bulletin It seems that the news cycle has been as important as fundamentals in pricing financial assets. But, there comes a time when valuations get stretched too far and even though there has not been an improvement
Global Fixed Income Bulletin The main trends in asset performance year-todate have been generally weak risky asset returns, outperformance by U.S. assets and the USD, weakness in emerging markets (EM) and higher oil prices. Most of these have been driven
On the Markets “Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men (or women) with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the
A recent Bloomberg article1 quoting economist Carmen Reinhart has raised concerns about the health of emerging market economies. In the following piece, Morgan Stanley Investment Management’s Emerging Market Debt team addresses some of her statements as well as other popular
On the Markets Relationship experts say that misunderstandings are often the result of miscommunication or an inability to communicate effectively. Furthermore, these deficiencies are usually the result of one party failing to listen. I am sure we all have many
On the Markets Success or failure is usually determined by a few key decisions or plays at critical moments. Most of our days consist of mundane tasks that everyone must do as part of their job and life. However, winning
Emotion is a powerful influence and can affect our behavior in ways that are illogical or even harmful. However, emotions are what make us human. While emotional experiences cover a broad spectrum, fear is often thought to be the most
Global Multi-Asset Viewpoint One of the biggest surprises of 2017 was that it turned out to be the best of all worlds for asset markets. At the beginning of the year, the consensus expected that the election of populists would
The potential impact of climate change is immense. The Economist Intelligence Unit has estimated that the damage from extreme weather associated with a 5°C (9°F) warming, alongside weaker economic growth, could result in $7 trillion of global losses in investment
New Data from the Individual Investor Two years after the inaugural Morgan Stanley Institute for Sustainable Investing survey of individual investors, the picture of sustainable investing in the United States is stronger than ever. The 2015 survey delivered much-needed clarity
What’s New With 1,823 ETFs listed in the US as of 5/25/17, it is not practical to provide research on every ETF. We currently publish one-page profiles only on a coverage universe of larger and more liquid ETFs with attractive
On the Markets When I was a teenager doing backbreaking work as a landscaper in the brutal Texas summer sun, I was really motivated to do well in school, secure a college education and eventually get a white-collar desk job
