Will Brazil be Forced to Tango?
Will Brazil’s next president maintain the fiscal discipline and investor confidence necessary to avoid defaulting on its debt?
Authored by: Robert Lang
Europe’s Economy: Growth Engines Stalled
Will Europe increase fiscal spending at the risk of undermining both the Stability and Growth Pact, as well as the EMU?
Economic Growth in Japan–the Moment Passes
Springtime in Japan brought welcome signs of economic recovery, but these moments proved to be as fleeting as the bloom of cherry blossoms.
U.K. Indexed-Linked Securities
While linkers may be inexpensive relative to nominal gilts, they are no bargain.
Why We Consider Japanese Equities Overvalued
Although several valuation metrics suggest that Japanese equities are fairly valued we consider them overvalued because of the precipitous state of the economy.
Of Bubbles and Bears
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 Appreciates
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.
Why Are U.K. Equities Outperforming?
Historically U.K. equities have outperformed European equities during periods of market weakness due to the U.K. market’s weighting in classic defensive groups. However, the outperformance this go-round is due to the financial sector. The U.K. banking subsector was boosted by acquisition activity and investors’ preference for U.K. banks’ low volatility, high dividend yields, and strong…
Are Emerging Markets Equities Still Cheap?
To gauge the effect of MSCI Emerging Markets Free’s stunning rally on their valuations we use four metrics—price-to-earnings, price-to-book, price-to-cash earnings, and dividend yield—to compare current valuations to historical emerging markets valuations and to developed markets equity valuations. Although the end result is unequivocal, we nevertheless find that emerging markets equities remain inexpensive.
U.K. Reflation Watch
In the United Kingdom inflation is under control but increasing, driven by strong consumer spending and rising oil and housing prices.