The Wall Street Journal published an article on August 1 headlined: “Bill Gross: Equities are Dead.” In fairness to Gross, what he actually wrote in his August “Investment Outlook” was, “the cult of equities is dying.” We agree with most of Gross’s argument—but not with his unsupported forecast of extremely low stock returns. (more…)
Not in our view. Although we recognize that the US and global economies continue to be scarred by the credit crunch that began in 2008, we think stock prices already discount the risks.
We believe that emerging markets often offer better growth prospects than most developed markets. But, as my colleague Morgan Harting argues, many investors are not exploiting the full potential—often because they are afraid of volatility. (more…)
The European Central Bank (ECB) has raised the prospect of a more effective bond-purchase programme. Unfortunately, it may require additional market pressure for governments to unlock that support.
State and local governments with significant pension funding shortfalls are coming under increased political pressure due to new transparency rules in accounting. My colleague Joe Rosenblum examines their options. (more…)
European Central Bank Governor Mario Draghi has raised expectations ahead of this week’s ECB Governing Council meeting. (more…)
Infrastructure investment in China is an important indicator of demand and a key signal of Beijing’s ability to revive the economy. This week, a flurry of news suggested that the rebound in infrastructure investment is gathering momentum. (more…)