While many pundits expect the financial sector’s problems to remain “contained,” we not only expect the bear market to spread beyond financials, but believe the economic damage may be greater than that inflicted during the downturn of 2000–03.
During prolonged bear markets, investors naturally focus on how best to allocate portfolio assets to ensure they are not wholly exposed to the full brunt of declining equity prices. However, as the economy deteriorates and the financial sector in particular suffers declining revenue and job losses, investors should also consider whether they have increased exposure…
Exposure to global mining and energy firms continues to ramp up.
Despite low valuations, U.S. financial stocks will likely remain a “value trap” until greater clarity emerges as to the ultimate magnitude of losses facing the financial system.
A summary of our views on the questions and issues which those responsible for managing an endowment must resolve if they are to invest the assets effectively.
After years of supporting share prices and EPS growth with increasingly aggressive share-repurchase programs, companies are showing signs of buyback fatigue.
Six years into the commodity boom, and despite increasing risk factors, there remains a strong rationale for a properly conceptualized and managed portfolio allocation to commodities.
While a large segment of the U.K. equity market is exposed to direct of knock-on effects of house price declines, this is not reflected in current prices.
A closer look at “quality” equities across developed markets reaffirms our view that high-quality equities remain attractive and portfolios should remain tilted toward mega-cap growth.
The European Central Bank has been far less hawkish than advertised; as a result, Eurozone prices may rise faster than most expect.