Financial markets have faced an increasing array of geopolitical risks this year. In our view, investors should put these events into the right context and focus on how individual companies might be affected when considering their potential impact on equity positions or allocations. (more…)
Morgan C. Harting (pictured) and Nelson Yu
Many investors in emerging markets (EMs) believe that identifying the fastest-growing economies is the key to finding higher returns. But while this approach has been effective in fixed-income investing, our research shows that it’s fairly useless for guiding country selection in developing-market equities. (more…)
Plans for a new Shanghai-Hong Kong trading system are among three developments that we expect will give a boost to China’s equity markets in the medium to long term. So despite concern about the economic outlook, now could be the time to begin rethinking China from an investment perspective. (more…)
Throughout history, humans have been the most intelligent beings on earth. But is this about to change? The advancement of neural networks could be the single most important development in helping machines think more like humans. Investors should take note.
Many things have changed in emerging markets (EMs) over the last two decades. Markets are more efficient than they used to be. But we believe that developing countries still provide fertile ground for finding stocks poised to outperform. (more…)
By Henry D’Auria (pictured) and Christine Phillpotts
Nigeria is Africa’s biggest economy and one of the world’s largest oil and gas producers. Resolving its electricity-generation gaps could significantly boost the country’s economic growth—and provide opportunities for equity investors. (more…)
Kent Hargis (pictured) and Chris Marx
After nearly nine months of calm, equity market volatility has returned and is threatening investors with the prospect of losing money. We believe the recent episode in US and global stocks reinforces the case for having a strategic allocation to equities that can withstand shocks. (more…)
Sammy Suzuki (pictured) and Morgan Harting
It’s getting harder to generate equity returns in emerging markets (EMs). Simply chasing the index—the so-called beta trade—won’t do the job anymore. But with a more discriminating, active approach, we believe investors can still capture opportunities in the next phase of the EM growth evolution. (more…)
Stuart Rae (pictured) and Rajeev Eyunni
As developed-market equities continue to scale multiyear highs, their emerging-market counterparts—most notably Asian ex Japan stocks—have been more hesitant. Is it time for investors to take a closer look at the region? (more…)
Want to reduce tax on your investment income? Avoid sales of appreciated stocks held less than a year. Here’s how it might have helped some disappointed Facebook shareholders earlier this year.