In recent years, the outperformance of their domestic markets relative to international markets has prompted U.S. and European investors to question the wisdom of global investing. Despite the superior risk-adjusted returns of U.S. equities and high correlations with other developed markets in recent years, investors should resist the urge of purging non-U.S. equities from their…
Over the course of the 18.25-year bull market, more than half of the market’s capital appreciation was driven by inflation and the decline in interest rates, and another 20% by multiple expansion, leaving only about 20% of the appreciation attributable to real earnings growth. Between March 31, 2000 and March 31, 2002, inflation continued to…
This survey-based report examines five main areas of endowment management expense (investment management, investment supervision, custody, legal, and accounting/audit) and explores funding sources for each.
Equity ownership remains low in Europe due to undeveloped public equity markets, generous pension plans, and the lack of tax incentives. European bulls cite the following to argue that ownership will rise: (1) the bull market of the late 1990s raised awareness of equities, (2) with falling interest rates, Europeans are looking to equities for…
As of April 1, 2002, the Japanese government will cease guaranteeing time deposits in excess of ¥10 million ($75,200) against the possibility of bank failure, leaving an estimated ¥200 trillion ($1.5 trillion) in bank deposits unprotected. Proponents of postponement of the deadline are worried that the limit on deposit insurance will prompt bank runs, especially…
Despite the persistent fall in equity prices, analyst expectations of S&P 500 earnings remain quite optimistic. Historical precedent suggests that earnings could well rebound within the time horizon envisaged by analysts, but are unlikely to prove as robust as they expect.
An assessment of the investment opportunities resulting from a debilitating combination of successive recessions in Japan and the reluctance of government officials to enact and enforce financial sector reforms. Key topics include market risks, supply of distressed assets, strategies to capitalize on the opportunity, and investment vehicles and fund structures.
This short paper reviews asset class valuations and offers summary asset allocation recommendations.
An analysis of venture capital and private equity opportunities in the U.S. telecom market using the following criteria: supply and demand imbalances, technological innovation, entry and exit valuations and strategies, risk factors, and returns.
As the title suggests, this report examines changes in the TIPS market since their first issuance in 1997, as well as implementation issues for institutions seeking either the inflation- or deflation-hedging features of TIPS.