December’s publication summarizes two firms’ assessments of policy changes announced after China’s recent Third Plenum. Capital Economics notes that the reforms announced by China’s leaders can reduce the risk of a so-called hard landing, but only if they are properly implemented. BCA Research examines planned changes to China’s GDP accounting, and concludes that investors may…

November’s publication summarizes two recent articles. The first explores the historical underperformance of highly liquid stocks as compared to their illiquid counterparts. The second notes the shrinking spreads on corporate debt and considers the market’s current position in the credit cycle. “Liquidity as an Investment Style,” Robert G. Ibbotson, Zhiwu Chen, Daniel Y.-J. Kim, and…

October’s publication summarizes two articles about the underperformance of emerging markets equities. The first notes that poor fundamentals in the so-called “BRIC” countries help explain the underperformance. The second discusses how large current account deficits in emerging markets today are the result of vulnerabilities different than those that caused difficulties for emerging markets in the…

September’s publication summarizes an article on the unstable relationship between emerging markets debt spreads and U.S. interest rates, and the variety of factors that “push” and “pull” money to emerging markets. “U.S. Interest Rates and Emerging Market Bond Yield Spreads: A Changing Relationship?” Cheikh A. Gueye and Amadou N.R. Sy, The Journal of Fixed Income, Spring…

August’s publication summarizes two articles that make the case for European stocks. The first argues that positive earnings surprises and continued multiple expansion will drive further outperformance. The second notes that a recent downturn in credit measures belies a better outlook for the second half of the year, and that some European bank shares could…

July’s publication summarizes two articles about the complex dynamics in China’s slowing economy. The first considers how high debt levels, industrial overcapacity, and the new government’s policy stance have increased the risk of a sharp economic slowdown. The second discusses how new Chinese banking regulations will restore investor confidence and allow growth to remain high,…

June’s publication summarizes two articles about European investment opportunities. The first looks at whether the recovery in European equities is vulnerable to reduced quantitative easing. The second discusses how, though all of the main tail risks have not been eliminated in Europe, there are still attractive opportunities. “Ride the Tightening” John Bilton et al., Bank…

May’s publication summarizes two outlooks for emerging markets. The first discusses how stronger economic growth and deepening capital markets will mean that emerging markets account for an increasing amount of global equity capitalization in future years, creating opportunities for investors. The second considers how structural problems in emerging markets are being misdiagnosed as cyclical issues;…

April’s publication summarizes two outlooks on Japanese markets and one on the challenges being created by today’s monetary policy. The first considers how the market has responded to the Bank of Japan’s recent monetary policy changes, and whether there is still room for further yen depreciation and Japanese equity gains. The second argues that for…

March’s publication summarizes two outlooks for fixed income markets. The first discusses various headwinds for bonds including better economic data and possible investor rotation into stocks, but points out that year-to-date fund flow data reflect investor recognition of these risks. The second focuses on the high-yield market, and talks about how fundamentals are starting to…