Looking ahead to 2014 we are focused on several key themes, among them the evolution of global monetary policy, the likelihood of European equities exceeding diminished expectations, and the headwinds, risks, and opportunities associated with emerging markets equities.
Monetary policy is an important wildcard, but deleveraging has faded as a headwind for U.S. economic growth and investors would be unwise to weigh it heavily in their investment decisions.
U.S. equity valuations have been the subject of intense debate. Investors should maintain their focus on normalized P/E ratios, which indicate that valuations are elevated and that U.S. stocks are priced to deliver low multi-year returns.
The endowment model of investing is far from broken. Early adopters of the model continue to push forward, reaping impressive gains along the way. In this paper we provide a practitioner’s perspective on the endowment model, the experience of some early adopters of the strategy, and the execution of the model in the current environment.
Impact investing, through which investors allocate capital to market-based (i.e., profit-oriented) solutions to social and environmental challenges—in contrast to philanthropic or political solutions—has garnered increasing attention over the last decade.
European Equities: Time to Focus on the Micro European equities trade near a record historical discount to U.S. equities; potential for a turnaround in earnings and improving macro conditions further bolster the case for an overweight position. Europe has faded from the headlines in 2013 as Federal Reserve tapering, Abenomics in Japan, and a slowdown…
While access to the Chinese A-share market is improving, investors should not rush in. Given that the market is still evolving, finding a skilled manager to navigate the challenges facing the A-share market is key.
Executive Summary Many families have significant wealth tied up in the publicly traded shares of a single firm. Concentrated exposure to a single stock—often the family’s original source of wealth—represents a significant risk to the family’s wealth and its future spending and charitable-gifting power. Single stocks, on average, are about 68% more volatile than a…
Despite recent weakness, we do not believe a 1990s-style emerging markets currency crisis is brewing.
An extensive examination of long-term trends in U.K. equity and fixed income valuations.