Outlook 2020: Ten Investing Themes for the Coming Year
Our thoughts on key macro questions, emerging opportunities, and risks in 2020.
Research Publications Archive
Will Weak Economic Data in the Euro Area Undercut Its Equities?
No, we don’t think so. While euro area economic activity has weakened meaningfully, with real GDP growth falling to its lowest annual pace (1.1%) since 2013 in third quarter, strong equity returns aren’t dependent on robust economic growth. Ultimately, we continue to like the bloc as part of a risk-controlled overweight to global ex US equities funded from US equities.
Pension Schemes in Pursuit of Income, Growth, and Diversification
A universal approach to portfolio construction can help schemes achieve required return targets whilst adding additional upside from alpha generation; reduce risk through true diversification; and generate sufficient income to comfortably meet both planned and unplanned cashflow needs.
Should Investors be Concerned About Central Banks’ Ability to Fight the Next Recession?
Yes. Economic growth is slowing, and governments have limited monetary and fiscal policy responses available in the event this slowdown becomes a recession. Today, investors need to weigh the investment implications of likely policy options.
A Summary of Climate Change Science for Investors
Investors would be wise to consider climate science in their investment decision-making process. Climate risk is likely underestimated by financial markets, and there is a window of opportunity for investors to get ahead of the curve, given our expected future repricing of this risk. This paper provides a high-level overview of the current climate science and discusses a few economic implications. Put simply, we all need to think like scientists now.
Is Private Equity Energy Dead?
No. But, the game has changed and to be successful, investors should adopt a new commitment strategy.
Trends in European Credit
European credit investors have enjoyed significant gains in 2019 as the combination of weak economic data and central bank easing has pushed yields lower. Investors will need to be nimble to find attractive risk-adjusted returns in the months ahead.
Comparative Asset Allocation and Total Return: UK Foundations and Endowments
Our biannual report summarizes asset allocation and total investment performance for 29 of Cambridge Associates’ UK foundation and endowment clients.
Comparative Asset Allocation: Private Clients
Our biannual report summarizes asset allocation for 80 of Cambridge Associates’ US-based private clients.
Investment Publications Highlights: Third Quarter 2019
Third quarter’s edition summarizes five articles on machine learning.