Should Investors Fret About Declining Earnings Estimates?
Geopolitical tensions and growth concerns loom large over the global economy, but we don’t think investors should fixate on the recent slowdown in near-term earnings expectations.
Equities
US Manager Universe Statistics: Fourth Quarter 2018
This chart book presents representative long-only and hedge fund manager performance for fourth quarter 2018. The median US Core Bonds manager posted the highest median return for fourth quarter 2018, returning 1.4%. The median Cash Management manager posted the best returns for the one-year period ending December 31, 2018, with a return of 2.0%. The median US Small-Cap Growth Equity manager posted the lowest median return for fourth quarter 2018 (-20.4%). The median Global ex US Small-Cap manager suffered the worst performance (-19.1%) for the one-year period.
Review of Market Performance: Calendar Year 2018
Myriad rising risks weighed on performance in 2018, leaving investors few places to hide among the sea of red.
What Drove October’s Market Sell-Off—Deteriorating Corporate Fundamentals or Economic Challenges?
Last month’s sell-off was mainly a reaction to macroeconomic headwinds that have been building this year; recent and expected corporate earnings growth has not weakened much. A handful of earnings disappointments by highly valued and high-profile tech firms have spurred vicious sell-offs, but these have been outliers. Building macro concerns and a few downbeat earnings calls translated…
US Manager Universe Statistics: Third Quarter 2018
This chart book presents representative long-only and hedge fund manager performance for third quarter 2018.
Are US Quality Stocks Still Defensive?
If implemented appropriately, we believe quality will decline less than broad equities under most stress scenarios.
Will Value Stocks Be Able to Outperform Growth Again, Given the Rising Dominance of Tech?
Growth stocks may continue to outperform value for a bit longer this cycle, but we think it quite premature to declare the death of value.
Rising from the Ashes: Key Developments Since the Global Financial Crisis
In this report, we briefly highlight five key post-GFC developments and discuss how investors might adapt their portfolios to these changes.
In Light of Ongoing “Brexit” Uncertainty, Should Investors Reduce Exposure to UK Equities?
No, investors should consider staying the course. Though developments and headlines associated with the United Kingdom’s Article 50 negotiations with the European Union have been and likely will remain fitful, they reflect more the political nature of the process and less the underlying fundamentals of the economy and its listed equities.
Bear Market Indicators: Where Are We in the US Cycle?
Though it is getting late in the cycle, there is nothing to indicate a recession is imminent; however, maintaining appropriate levels of diversification and liquidity to meet cash requirements during periods of stress is becoming increasingly important.