Global Government Bonds: Blowing Bubbles
Global real bond yields are not far from their historical averages, confirming our aversion to allocating assets based on interest rate predictions.
Authored by: Robert Lang
Investing in Global ex U.S. Small-Caps: Can a Case be Made?
While non-U.S. small-cap equities appear undervalued, performance may vary significantly between the two primary indices.
The Financial Sector: A Giant Octopus and its Tentacles
Not since the oil shock of the early 1980s has a single sector accounted for such a large percentage of market earnings—what does this mean for investors?
U.K. Property: Attractive, But Pricey
Although property has outperformed equities and bonds over the last 16 years, 10%+ annual returns are unlikely in the foreseeable future.
Japanese Equities: Getting Interesting
The combination of pervasive gloom, low expectations, attractive valuations, and a refusal to acknowledge the positive changes, which are occurring (albeit slowly) in Japan has begun to whet our appetite for Japanese equities.
Small-Cap Strength: Running Out of Fuel or Signaling for a Broader Pick-Up?
Small-cap stocks have been remarkably resilient over the last four and a half years, but the sector appears to be weakening.
Reality Earnings
Despite the steady stream of financial scandals and revelations of conflicts of interest on Wall Street, the game of beating analyst projections continues.
Why Has Value so Consistently Outperformed Growth?
Benchmark construction idiosyncrasies, as well as the limited acceptance of diversification through style investing, has contributed to value’s persistent outperformance of growth in Europe.
Bear Market Rallies
Given the explosiveness of past bear market rallies, investors should rebalance instead of sitting in cash or assuming a prospective rally represents the start of a prolonged recovery.
U.K. Pension Fund Asset Allocation
Despite the convergence of gilt yields with the equity market yield and the implications this has for pension funds seeking to match assets and liabilities, investors should resist the temptation to shift wholesale into bonds.