Asian consumers are proud of their distinct tastes and traditions. That puts homegrown restaurant franchises and consumer companies with a deep knowledge of local appetites at the top of the food chain. In our view, they stand a good chance of staying there, even as competition from global franchises and brands picks up. (more…)
Much of the recent economic data from the euro zone has been decidedly downbeat, with growth trends weak and signs of deflation emerging. The good news is that Europe’s policymakers are responding vigorously. We may now be in a “bad news is good news” scenario for European equities. (more…)
The rapidly aging demographic in developing countries is an important market for consumer companies. For investors, it’s imperative to understand why complex socioeconomic changes will affect spending patterns in unfamiliar ways as emerging markets mature. (more…)
Investors looking for the kind of growth that up-and-coming smaller companies can deliver can’t afford to ignore Asia. We see exciting niche opportunities there—but finding them requires patience and on-the-ground expertise. (more…)
After a sharp five-year rally in US real estate stocks, investors are questioning whether they may be vulnerable to a rise in interest rates. Our research suggests that global real estate stocks may be more likely to weather a changing rate environment. (more…)
Stuart Rae (pictured) and John Lin
For investors in China equities, there have traditionally been two ways of approaching the market: through expensive growth stocks, or risky contrarian plays. Now, thanks to China’s reforms, there’s a third way which may offer a better balance of risk and return. (more…)
Many investors think US stocks are due for a correction: They feel that the market has run too far, that the Fed has been slow to act, that complacency has created pockets of excess. Do these gut feelings mean a major equity correction looms? Not yet, in our view.
Though they’ve defied expectations this year, higher interest rates appear to be all but inevitable. Investors need to take measure of the rate sensitivity in their portfolios—and stay agile—to negotiate the rough market crosscurrents a rate reversal may bring.
It’s been a very strong earnings season for US companies. But for many, it’s becoming much more challenging to expand profit margins. In a tougher environment, we think investors should focus more closely on revenue growth to find stocks that can thrive. (more…)
Katsuaki Ogata (pictured) and Takuji Oya
Japanese prime minister Shinzo Abe’s latest blueprint for sustained long-term economic growth was met with quite a bit of skepticism. It’s easy to play down the so-called Third Arrow as an assortment of cryptic reform measures. But we believe that there’s some substance that warrants equity investors’ attention. (more…)