Emerging Markets—Dancing to Their Own Beat is an intricate exploration into the current economic and monetary policies in emerging markets (EMs) against the backdrop of a shifting global economic environment. The piece provides insights into monetary policy trends, the slowdown
The text, "Global Asset Allocation: The View From Europe – Market Perspective", highlights the varied economic growth patterns and challenges faced by major regions globally. With fluctuating inflationary pressures, central bank policies, and concerns related to China's property sector and
The recent analysis of the regional banking sector illustrates a complex environment. Despite regulatory attempts to stabilize the situation, regional banks are still grappling with higher funding costs, primarily stemming from the Federal Reserve's quantitative tightening. Although some regulatory changes,
China’s economy is slowing faster than expected, and further weakness is possible amid a flurry of negative developments in the property and trust sectors. We expect further monetary policy easing measures from China’s central bank to support the economy. Fiscal
Despite areas of weakness, we do not anticipate significant stimulus from the Chinese government. China’s policymakers have the tools and capacity to prevent a systemic issue stemming from stress in the nonbank financial sector. While unlikely, notable weakening in China’s
Understanding the interconnected dynamics of global inflation is critical for astute investors, particularly given recent global events. The research titled "Inflation Globalization" highlights that inflation patterns have been largely synchronized across the globe in recent decades, especially with the deepening
The document titled "Applied philosophy: The red and the blue" explores the performance trajectory of Chinese sovereign bonds relative to US Treasuries since mid-2020. It delves into the economic dynamics shaped by fiscal and monetary policies that both countries have
p>In "Global Asset Allocation: The View From Europe", the author paints a comprehensive picture of the international economic landscape, emphasizing areas of growth, resilience, and concern. Key insights highlight the U.S. economy's unexpected strength, Europe's challenges from a mild recession
The original title, "Perspectives on Securitized Credit – KEY INSIGHTS," sets the scene for a comprehensive analysis of securitized markets following the banking distress in March. The text emphasizes the stabilization and forward momentum experienced by securitized credit markets during
The "Integrated Equity Quarterly Newsletter" for Q2 2023, authored by the T. Rowe Price Integrated Equity Team, sheds light on pivotal themes defining the market landscape. A primary observation is the robust performance of U.S. large-caps, driven by growth stocks,
In the recent research by T. Rowe Price, a shift in global asset allocation strategy is outlined. The document titled "Global Asset Allocation: The View From Europe" highlights the firm's preference for cash over equities and bonds, given the slowing
The global economic landscape might be on the cusp of a 'garden variety' recession, differing considerably from the 2008 financial crisis and the COVID-19 driven downturn. The evidence builds up as labor markets start to lose momentum, ultimately leading to
In the research paper "Growth Matters Even More Amid Uncertainty," the author emphasizes the importance of pursuing growth opportunities even amid economic volatility. The report details how high interest rates and economic unpredictability require investors to broaden their scope in
In the midst of geopolitical upheaval and the increasing necessity for supply chain independence, T. Rowe Price emphasizes the importance of identifying winners in this restructuring process. They stress the need to pinpoint quality companies that demonstrate prospects of improving
The 2023 Midyear Market Outlook paints a reluctant bearish picture. Despite clear risks posed by sticky inflation, central bank tightening, and financial instability, economies and markets are demonstrating surprising resilience. As Sébastien Page, head of Global Multi-Asset and Chief Investment
The macroeconomic outlook reveals a blend of opportunities and challenges as viewed from Europe. Despite tightening financial conditions expected to affect economic growth, data have been surprisingly positive. Central banks globally are nearing peak tightening, with the Federal Reserve possibly
T. Rowe Price's Portfolio Manager Wenli Zheng provides insights into the investment opportunities in China's post-COVID environment. Zheng highlights a positive outlook for China's economy, characterized by a consumption recovery and private investment boost, despite China equities bouncing 40% to
The narrative for Japan is on an upward trajectory, according to the report "The Japan Story Is Gathering Momentum". Despite macroeconomic uncertainties, Japan's outlook is bright, with inflation making a sustainable return, specifically wage inflation. Market valuations appear attractive compared
In his paper "Currency Hedging Can Boost Yields and Reduce Volatility", T. Rowe Price points out a crucial but often overlooked investment opportunity. He posits that while foreign currency bonds may initially seem less appealing to U.S. investors due to
What Does the Stress in Regional Banking Mean for U.S. Smaller Companies? The provided text deals with the ripple effects of stress in the U.S. regional banking sector on smaller U.S. companies. The document's main theme is the aftermath of
T. Rowe Price's "Foundations of Emerging Markets Bond Investing – Four-part anchoring framework fundamental to debt sustainability" offers an in-depth country-specific analysis of debt sustainability. This study is distinguished by its focus on four interrelated components that play a critical
In "Global Asset Allocation Viewpoints," T. Rowe Price examines the current economic landscape marked by slowing growth, persistent inflation, and declining liquidity, which instills a sense of caution. Despite this, several positive factors such as a resilient labor market, robust
The text outlines a pragmatic approach to global asset allocation, given the prevailing economic conditions. It delves into the intricacies of economic forecasts influenced by central banks' tightening, potential banking crises, and geopolitical tensions. A slowdown in growth and continued
T. Rowe Price, in "Multi-Asset Collaboration and Due Diligence. How we actively monitor and fortify our building blocks," discusses their meticulous due diligence process that ensures the continual suitability of each underlying strategy within their multi-asset portfolios. This approach is
The text focuses on the increasing importance of climate change management in determining sovereign and credit risk. Notably, green bonds are being used to steer capital towards climate change prevention and adaptation. Moreover, supranational organisations are seen as key in
Meet Dominic Rizzo, the newly-appointed sole manager of the Global Technology Equity Strategy since April 1, 2023. Based in Baltimore, Rizzo brings a wealth of experience in investing across all equity style categories, from growth to value and large-cap to
Divest or engage to meet climate commitments? In "Divest or engage to meet climate commitments?", the main theme revolves around reconciling net zero goals with investments in fossil fuel companies. The text discusses the challenges faced by asset managers in
China's Reopening: Implications and Impact In this analysis, the author discusses the potential outcomes of China's reopening following the abrupt end of the zero-COVID policy. The main theme of the text revolves around two alternative economic reopening scenarios and their
In "Building Core Strength to Meet Demands of Markets" stelt T. Rowe Price het belang vast van het balanceren van zowel waarde- als groeistijlen in beleggingsportefeuilles. Deze aanpak vermindert portefeuillerisico en elimineert de noodzaak voor beleggers om op één specifieke
Global Markets: Monthly Update and Key Insights The latest global markets report reveals mixed performance in major equity markets as investors assess growth opportunities against inflation concerns, with bond prices falling globally. The report highlights the 41-year high Japanese inflation,
Global growth remains resilient, but the tightening of central bank policies is expected to impact economic growth and earnings outlook in the latter half of the year. The US Federal Reserve and other central banks are hawkish due to services
The recent collapses of Silicon Valley Bank (SVB) and Signature Bank have caused some investors to worry about systemic risk in the banking system and its impact on the domestic economy. However, these concerns may be unwarranted. According to financial
This document explores the gender gap in retirement savings and provides solutions for narrowing the gap. While both men and women have access to retirement plans, women tend to contribute less, save less, and have less confidence in their retirement
Uncertainty about the U.S. economic outlook has seen smaller companies bear the brunt of investor fears over the past year. Valuations have fallen to extreme lows, relative to larger companies, despite earnings holding up reasonably well. With the U.S. economy
Albeit painful, bear markets can drive durable changes that can reward patient investors. Three shifts could create opportunities for growth investors: cyclicality in big tech, higher base inflation and interest rates, and deglobalization. Against this backdrop, the setups in select
Equity markets rallied from the beginning of the year into early February, driven by encouraging data regarding the health of the U.S. economy and improved economic outlooks in China and Europe that were supported by the reopening of the Chinese
After a decade of dominance by growth stocks, value stocks came back with a vengeance last year: The MSCI World Value Index outperformed its growth counterpart by more than 20 percentage points. This does not necessarily mean that value investing
Markets have started 2023 strongly as some of the headwinds that dominated markets in 2022 have started to dissipate. China has reopened its economy faster than expected; warm weather in the euro area has eased concerns over natural gas shortages;
Congress has taken action to raise the debt limit, temporarily suspend it, or revise how it is defined on 78 occasions since 1960.1 Given the potential consequences, failing to raise the debt ceiling should not be an option. However, this year,
ESG integration can be an essential component to unlocking value. KEY INSIGHTS An increasing number of investors now acknowledge that ESG and value investing are not mutually exclusive. If ESG integration is implemented properly, it can be a crucial component to
KEY INSIGHTS After a difficult year, securitized credit markets exited 2022 with positive momentum that carried over into early 2023. Supply technicals should become less of a headwind and more of a tailwind for securitized credit markets in 2023. Securitized
Global Asset Allocation: The View From Europe After outpacing the rest of the world by more than 170% over the past nine years between 2013 and 2021, US equity markets notably lagged the rest of the world last year. Despite
Additionality can accelerate and strengthen impact investing. KEY INSIGHTS In the world of impact investing, additionality helps to generate positive outcomes that may not otherwise occur without the value of engagement or capital investment. It furthers the drive toward positive impact by
Fundamental research can reveal opportunities in the asset class KEY INSIGHTS Securitized credit can be a useful fixed income allocation for institutional investors who focus on book yield or those trying to match future pension liabilities. The asset class typically
There is a strong case to be made for active management in high yield bonds, in our view, with an active approach offering several important advantages. Active management allows for fundamental analysis and security selection across the full high yield
Wholesale gas prices surged in the summer, leading to dire predictions of blackouts, rationing, and people freezing in their homes. Since then, prices have retraced as it has become clear that most European countries have largely succeeded in filling their
With one year having passed since the launch of the strategy, Portfolio Manager, Matt Lawton, answers questions about the evolution of impact investing over the past 12 months, activity within the strategy, successes and challenges …
Wholesale gas prices surged in the summer, leading to dire predictions of blackouts, rationing, and people freezing in their homes. Since then, prices have retraced as it has become clear that most European countries have largely succeeded in filling their
We remain relatively constructive on Asia ex‑Japan equities for 2023. The short-term setup for China and North Asia looks attractive: Valuations are at cyclically depressed levels, and the markets are very under-owned by global investors. We are seeing clear signs
China Market Outlook 2023 KEY INSIGHTS Since the Party Congress, China has announced a significant easing in its zero-COVID restrictions and more measures to stabilize residential property, which is encouraging. China is at a different stage of its business cycle
