No, we do not recommend that investors go long duration in fixed income portfolios. The uncertain inflation outlook and potential for more aggressive policy tightening suggest yields could rise further.
The Federal Reserve is poised to continue lifting interest rates this year. Many investors tend to view tightening Fed policy as a headwind for emerging markets (EM) equity performance and may be tempted to dial back exposure to the bloc, but market history is an inconsistent guide when gauging how EM equities will perform when the Fed raises rates. In this paper, we outline several reasons EM exposures could prove to be diversifying as the current cycle plays out.
Overall, we view high oil prices as another headwind for expensive growth stocks and potentially European markets, which are more exposed via their reliance on Russian energy exports.
The US housing market has been on a tear in recent years, supported by low interest rates, favorable supply/demand dynamics, and a recent boost from the pandemic-related demand for more space. This publication provides an update on some of the macro forces supporting housing and describes different asset classes that offer exposure to US housing.
Our third annual Endowment Radar Study reflects the growing role of the endowment in the private college and university business model. This year saw notable growth in the endowment’s support of the budget and its contribution to balance sheet health.
For the eighth straight year, the majority of active mid- to large-cap equity managers underperformed in 2021.
Yes. According to a recent report released by the Intergovernmental Panel on Climate Change, “climate change is a threat to human well-being and planetary health,” and the window of opportunity to “secure a livable and sustainable future for all” is rapidly closing.
The 2021 Emerging Markets edition of our annual report on the history of financial markets provides context for the range of returns investors can expect from equities, bonds, and cash; reveals the importance of various components of equity returns; examines the evidence for equity mean reversion; and reviews the relationship between initial valuations and subsequent returns for equities and bonds.
Our biannual report summarizes asset allocation and total investment performance for 23 of Cambridge Associates’ UK foundation and endowment clients.
Given Russia’s invasion of Ukraine, concerns that China might decide to invade Taiwan are rising. But China is not Russia, and Taiwan is not Ukraine. For China to unilaterally break the status quo and risk a failed invasion and inflict economic pain on the population would be extremely destabilizing for a party that puts domestic stability above everything else. And given the current state of the Chinese economy and China’s vulnerability to US tech sanctions and the USD banking system, China is unlikely to invade Taiwan any time soon.