Are Eurozone Equities Still Poised to Outperform in 2016?
Yes, but the amount of outperformance could be limited, and growing macro-driven volatility will likely cap the absolute level of returns.
Investment Planning
Investment Publications Highlights: February 2016
February’s publication summarizes two articles discussing the economy and its impact on markets. The first argues that while recessions are likely to occur more frequently in the future, the probability of a near-term recession in developed markets is low, and the second suggests valuations, not economic growth rates, drive equity market returns.
Is the Strong-Dollar Cycle Over?
The US dollar may remain under pressure in the near term, but we doubt the strong-dollar cycle is over.
New Zealand Outlook 2016: Keep Steady
Risks to the global economy are rising, but the New Zealand economy is relatively well placed compared to others, with many of the risks external in nature.
Is the US Market Drop Just a Hiccup in a Continuing Bull Market, or the Beginning of a New Bear?
In this edition of CA Answers, two members of our research team debate whether markets have entered a new bear phase.
Australia Outlook 2016: Déjà Vu All Over Again …
Investors should be prepared for 2016 to look similar to 2015, with high volatility and poor returns for risk assets.
Is It Time to Rebalance?
Begin to rebalance into undervalued assets provided you have adequate liquidity to take advantage of additional opportunities that may develop.
Investment Publications Highlights: January 2016
January’s publication summarizes three articles on value, growth, and momentum. The first separates fact from fiction in value investing, the second discusses how the growth premium can be helpful to the value investor, and the third highlights how momentum in combination with value and growth can lead to a less-risky portfolio.
VantagePoint: First Quarter 2016
In this edition of VantagePoint, we briefly discuss economic growth prospects, reaffirming the need to be cautious about cyclically oriented assets in an environment of low growth and severe weakness in some corners that could potentially spread. In other words, we remain patient in evaluating opportunities and set high standards for taking cyclical risk. We review our outlook for cheap assets that keep getting cheaper (commodity-related assets and emerging markets equities), evaluate the case for high-yield bonds as yields and spreads have widened, and revisit our global developed markets equity recommendations.
What Should Investors Expect From Developed Markets Equities in 2016?
2015 looks likely to go down as a year to forget for many investors, and 2016 may bring only slight improvement.