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
Market Perspective Volatility likely to remain elevated in the new year as central bank policy expectations diverge amid evidence of slowing growth and moderating inflation. While slowing the pace of tightening, the US Federal Reserve reinforced its commitment to taming
Fixed Income Impact portfolios can be flexibly managed to client objectives Increasingly, companies are being measured not only by their earnings and cash flow, but according to the effect their activities have on the environment and society. As a result,
On the surface, the better‑than‑expected rebound in US gross domestic product (GDP) growth in the third quarter would reinforce the Fed’s need to remain aggressive on tightening policy. However, looking at the details, there is growing evidence that the economy
Global Asset Allocation: The View From Europe: Hopes for a continuation of the summer rally off the June lows were dashed in the back half of the third quarter. The inflection lower in risk assets coincided with Fed Chairman Jerome
It Fooled You Once… Coming out of the annual Jackson Hole meeting, Fed Chairman Jerome Powell’s speech, unsurprisingly, had a strong tone reinforcing the Fed’s intention to fight inflation at any cost, a 180-degree reversal of his ‘inflation is transient’
Market Themes Whatever It Takes 2.0 Keep On Smiling
Generating positive returns in tougher conditions requires new thinking. KEY INSIGHTS Challenging market conditions and deeper structural shifts are demanding fresh thinking from investors. Such thinking may include new ways to help mitigate the impact of volatility on equity portfolios, adapt
Market Perspective Inflation concerns remain at the forefront for central banks and investors as global growth continues to trend lower amid supply disruptions, geopolitical challenges and reduction of liquidity, setting the stage for a challenging macro backdrop. The US Federal
With inflation at multi-decade highs and growth already slowing, investors were rightfully sceptical about the Fed’s ability to aggressively tackle inflation without sending the economy into recession having waited too long. Now two hikes in and messaging front-loading future hikes
Global Asset Allocation: The View From Europe War, inflation and lingering COVID-19 impacts have set the stage for a challenging start to 2022 for investors, with both stocks and bonds down over 9% in response. While dynamic, stocks and bonds on
Beginning of the End? The more than four-decade bull market for bonds, supported by low inflation and declining rates, that provided a tailwind of price appreciation on top of income, may finally be coming to an end. For bond investors,
Russia’s invasion of Ukraine has shocked the world, and while the immediate concerns are the human toll on the Ukrainian people, the implications and aftermath will be felt far beyond the region. With the European continent being thrown into chaos
Discipline creates a strong investment process for our clients. KEY INSIGHTS Fundamental analysis, backed by our global research platform, is the core of our investment approach and provides a strong foundation for stock selection. To uncover opportunities for our clients,
Equity markets are off to their worst start of the year since 2009 as they continue to price in the Federal Reserve’s hawkish pivot and the probability of over five rate hikes this year. The drawdown in equities has been
Equity markets are off to their worst start of the year since 2009 as they continue to price in the Federal Reserve’s hawkish pivot and the probability of over five rate hikes this year. The drawdown in equities has been
Global Asset Allocation: The View From Europe The Federal Reserve turned decisively more hawkish at its December meeting, announcing an acceleration of the pace of tapering, which will now end asset purchases by March, and guided towards a midyear start
2022 Global Market Outlook: Despite headwinds from the pandemic, the global economic recovery still appears on track – but inflation risks have risen. In 2022, investors will need to watch what fiscal and monetary policymakers do to try to stem price pressures while
Global Asset Allocation: The View From Europe: While stocks have broadly rallied nearly 80% off the lows of March 2020, leadership within has flip‑flopped between expensive, defensive growth …
China Unexplored Portfolio Specialist, Rob Secker, looks at ways in which active investors can exploit market inefficiencies and construct a Chinese equity portfolio. We look at how investors can exploit market inefficiencies and extract value from China’s investment universe. China is
Just as the global economy is finally gaining traction after delta variant setbacks, some economies are facing severe energy shortages, with energy prices up over 70% since last year. The impacts are being felt across Europe, which is facing shortages
In recent years we’ve seen a surge of interest in exchange traded funds (ETFs) as a cost efficient and effective way to try and replicate market index performance. But are ETFs as effective as investors think? As part of our
Avoid complacency when seeking to buy and hold durable growers. The strategy’s largest holdings and sector allocations bear little resemblance to where they stood two decades ago, a reminder of the massive changes that have taken place in the global
Beijing’s policy actions in the property sector seem to be containing any potential contagion effect. KEY INSIGHTS We are confident that there will be a well‑managed deflation of the debt balloon in the real estate sector and that Evergrande’s troubles
Global Asset Allocation: The View From Europe After a crackdown on internet technology and educational companies last month, risks continue to emerge out of China, including the potential fallout in its massive real estate sector following missed debt payments by
In this quickfire Q&A, Yoram Lustig, Head of Multi-Asset Solutions, EMEA, outlines the compelling reasons why investors should consider a strategic allocation to emerging market equities – as well as the benefits of employing active management in this increasingly diverse
Balancing health and environmental concerns with the material’s utility. Over just a few short decades, plastic in its many forms has become a ubiquitous material in modern life. But its many uses and economic and practical benefits have not come
Increased issuance means more buy‑side diligence is needed. The extraordinary growth of debt issuance with an environmental, social, and governance (ESG) focus over the last few years has brought responsible investing to the forefront of fixed income management, with the increase
China’s regulatory actions, driven by Beijing’s financial, security, and social objectives, have injected volatility into the credit market over the past year. Key themes such as the mantra of housing for living in, not speculation; reducing the education cost burden
More monetary policy control as rate decisions have a broader impact. Digital currencies issued by emerging market (EM) central banks are set to enhance financial inclusion and facilitate greater control over their nations’ economies. As central bank digital currencies (CBDCs) are
There will be a focus on green fiscal policy and redistribution. German economic policy looks set to change direction after this month’s election as the Green party is almost certain to form part of the country’s new governing coalition. More aggressive
China, Japan, technology, and value have potential to shape global markets in 2021 and beyond. T. Rowe Price Insights on International Equities: The rapid rise of China to the world’s second‑largest economy is widely observed. Yet, investors appear to underappreciate China’s
Judging from the performance of equity markets alone, the past four to six weeks appear to have followed the theme of the previous 12 months: a relentless rally in risk assets. When other markets are considered, though, a very different picture emerges.
Global Asset Allocation: The View From Europe Coming out of the Jackson Hole Economic Symposium, Federal Reserve Chairman Jerome Powell signalled that the Fed could begin to wind down its monthly bond buying by year-end, if the economy and coronavirus
