Will Value Stocks Continue to Outperform?
Prospects are tenuous for sustained outperformance of value stocks on the whole. We recommend owning value stocks, but would not broadly overweight just yet.
Investment Planning
Pondering the Consequences of “Brexit”
As the cacophony surrounding the 23 June “Brexit” referendum grows, just how much the United Kingdom stands to lose or gain from leaving remains unclear, and investors with substantial exposures to British assets would do well to pay attention to sentiment.
Investment Publications Highlights: March 2016
March’s publication summarizes three articles discussing the implications of the UK’s June 23 referendum vote on EU membership. The first argues that the UK economy stands to lose from an exit vote even under optimistic assumptions, the second highlights how the uncertainty connected to the vote is already taking a toll on the UK economy, and the third suggests investors should trim exposure to peripheral EU countries.
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 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.