This paper speculates that while some of the excess from the equity bubble years has been worked off, the secular bottom will probably not arrive until valuations improve and despair reaches levels proportional to the preceding bull market euphoria.
Springtime in Japan brought welcome signs of economic recovery, but these moments proved to be as fleeting as the bloom of cherry blossoms.
This paper speculates that while some of the excess from the equity bubble years has been worked off, the secular bottom will probably not arrive until valuations improve and despair reaches levels proportional to the preceding bull market euphoria.
While linkers may be inexpensive relative to nominal gilts, they are no bargain.
This report suggests preconditions to the selection of appropriate benchmarks and the flaws inherent even in careful selection. Discrete sections for public market investments, marketable alternatives, private equity, and real estate are included.
Although several valuation metrics suggest that Japanese equities are fairly valued we consider them overvalued because of the precipitous state of the economy.
If the unwinding of the recent bubble conforms to the typical pattern of past post-speculative periods, investors should be prepared for a long, hard slog.
The euro’s appreciation against the U.S. dollar holds symbolic importance for Europeans, but negative consequences for their economy. Until domestic demand in the region improves, the strengthening euro could undermine the Continent’s economic growth, corporate profits, and equity prices.
The U.S. dollar continues to slide against other major currencies, prompting concerns about how institutional investors can hedge against the possibility of a more vicious drop in the greenback.
This commentary takes an in-depth look at the U.S. equity market.