VantagePoint: Third Quarter 2019
In this edition of VantagePoint, we uncover four of the most common inaccuracies we hear about US equities.
Equities
Could the Equity and Bond Markets Both be Right About the Macro Outlook?
Yes. While equity and bond markets don’t often rise in tandem like they have lately, history suggests that both recent moves could be warranted if central bank stimulus successfully extends the cycle. But that is a big “if”; several moving parts cloud the macro outlook, and markets are assuming that central banks can reverse the recent economic slowdown.
Has the US-China Trade War Ensnarled the Euro Area?
Yes. The seemingly ever-expanding US-China trade war has undercut economic activity in the euro area, challenging earnings expectations and the bloc’s currency.
Given Prolonged US Equity Market Dominance, Should Investors Reconsider Existing Overweights to Global ex US Stocks?
No, we believe investors should maintain a modest tilt away from US equities and toward global ex US stocks.
US Manager Universe Statistics: First Quarter 2019
The median US Mid-Cap Growth Equity manager posted the highest median return for first quarter 2019, returning 19.3%. For the one-year period ending March 31, 2019, the median US Real Estate Investment Trust manager posted the best return (18.8%).
Should Investors Allocate to Public or Private Chinese Investments?
Public and private Chinese equities both present attractive investment opportunities today.
With Brexit Stress Peaking, Should Investors Tactically Increase Exposure to UK Equities?
No, we don’t believe the politics of Brexit are conducive to tactical asset allocation.
Investment Publications Highlights: First Quarter 2019
First quarter’s edition summarizes five articles on the varying role volatility plays in the investment process.
Should Investors Chase the Rally in China A-Shares?
Yes, but only if you can tolerate the volatility.
Emerging Markets Equity Manager Performance: 2018
More than 63% of active emerging markets equity managers underperformed the MSCI Emerging Markets Index gross of fees in 2018, marking the third consecutive year of underperformance. This chart book is our annual summary of the absolute and relative performance of managers that report to our database. This is a companion piece to the US, global ex US, and global equity manager performance chart books already published.