Review of Market Performance: Calendar Year 2023
Risk assets enjoyed mostly positive returns in CY 2023. Developed markets equities led as fears over the severity of a possible recession moderated and inflation declined.
Authored by: Vivian Gan
2024 Outlook: Private Equity & Venture Capital
We expect US venture capital down rounds will increase, even as artificial intelligence continues to serve as a major catalyst within the market. We believe flows to European turnaround and value strategies will increase and flows to China private investments will remain muted. We expect secondary transaction volume will increase to a record level.
Do Shifting US-China Geopolitics Create Investment Opportunities Elsewhere in Asia?
Yes, US-China geopolitical realities are already having an impact on trade and investment flows within Asia. China will remain an important destination for investor capital, but the shift in capital flows, alongside positive domestic structural developments in other parts of Asia, create investment opportunities beyond China that deserve a closer look.
VantagePoint: Asia Opportunities Amid Shifting Geopolitics – Part II
The shifting geopolitical realities between the United States and China have already impacted trade and investment flows. In this two-part series of VantagePoint, we review this reality and consider investment implications alongside those of other key factors—such as domestic structural developments, macroeconomic conditions, and valuations. In Part I, we focused on opportunities in China specifically. In this companion piece, we discuss investment opportunities beyond China.
VantagePoint: Asia Opportunities Amid Shifting Geopolitics – Part I
The shifting geopolitical realities between the United States and China have already impacted trade and investment flows. In this two-part series of VantagePoint, we review this reality and consider investment implications alongside those of other key factors—such as domestic structural developments, macroeconomic conditions, and valuations. In Part I, we focus on opportunities in China specifically, and in Part II, we discuss other Asian investment opportunities beyond China.
Will Japanese Equities Continue to Outperform?
No, we do not think it is likely that Japanese equities can meaningfully outperform in the near term, given growing headwinds from the slowing global manufacturing cycle, possible monetary tightening, and potential Japanese yen strength.
Review of Market Performance: Fiscal Year 2023
Risk assets enjoyed mostly positive returns in fiscal year 2023. Equities rebounded as fears over the severity of a possible recession moderated. Emerging markets equities lagged developed markets as the pace of reopening in China disappointed. Bond performance improved as credit assets posted positive returns but developed markets sovereign bonds struggled. Real assets suffered due to higher interest rates and slowing demand.
US Limits Semiconductor, Quantum Computing, and AI Investments in China
Yesterday, US President Biden issued an Executive Order (EO) limiting US investments in China in three technology sectors—semiconductors and microelectronics, certain artificial intelligence systems, and quantum information technologies—in 2024 and beyond.
Is Now a Good Time to Invest in the Energy Transition?
Yes, the transition to a low-carbon economy is producing a myriad of productive ways to put capital to work.
VantagePoint: Investing in a Low-Carbon Future
The energy transition involves a complex and dynamic set of changes in the way we do just about everything. While significant progress has been made in some quarters, considerable capital will be needed to fund the massive investment required over coming decades. We expect investors with a deliberate and thoughtful plan to invest in the transition across the risk/reward spectrum will be rewarded.