Equities

Small-Cap Stocks Present Large Opportunity

, | Download

US small-cap stocks have underperformed large-cap peers in recent years, opening a significant valuation discount that seems hard to justify based on relative earnings strength or balance sheet health. The sector exposure of small-cap stocks may make them better positioned for the current environment of rising interest rates and high commodity prices. While small caps should always be a part of investors’ tool kits, now is an especially opportune time to add exposure, given historically low valuations.

Market Matters: May 31, 2022

, , , | Market Matters Series | Download

Risk assets continued their bumpy ride in May as investors attempted to discount a shifting economic narrative. Still, global equities posted only minor declines in local currency terms despite a meaningful increase in volatility. Value topped growth for the fourth time this year, while large caps outperformed small caps. Investment-grade bonds advanced as US Treasury yields mostly fell, whereas European government bond yields continued climbing across maturities. Commodities rose, driven by higher energy prices, while other real assets were mixed. The US dollar and UK sterling weakened, while the euro broadly gained on expectations of tighter monetary policy.

Global Equity Manager Performance: 2021

| Download

The vast majority of active managers underperformed the index in 2021—the worst year for active global equities managers we have on record. This chart book is our annual summary of the absolute and relative performance of managers that report to our database.

War in Ukraine Dents European Growth Prospects

, , , , | Download

The ongoing war in Ukraine has exerted a material impact on both global economies and markets, primarily via a steep increase in commodity prices, especially energy. Europe has been particularly affected due to its geographical proximity and the resultant dependence of many of its nations on Russian fossil fuels. This chart book reviews the hit to European growth associated with the war in Ukraine.

VantagePoint: Resilience in a Time of Uncertainty

, , , , , | VantagePoint Series | Download

Global inflation has been higher and more persistent than most economists anticipated. In this edition of VantagePoint, we evaluate current inflationary and deflationary crosscurrents and the implications for investors. We continue to believe that predicting the future path of inflation is difficult to do well and that the best protection is a well-constructed diversified portfolio designed to meet the asset owner’s risk tolerance, portfolio objectives, and spending needs.