GEMs ESG Materiality, H1 2024
spotlight on South Korea
A new dawn for UK equities
Fast reading The news flow around the UK’s economy and its financial markets has been mostly negative for almost a decade. It has contributed to poor market sentiment which has been reflected in declining allocations to UK equities and cheap valuations. However, as the outlook for the country’s economy improves, we believe the current environment […]
Shopping around: The outlook for US retail
Fast reading US consumers are still spending but are selective as they continue to seek good value for money. Revenues have been hit by soft traffic and purchasing trends as consumers look to manage spending. Companies are focusing on core brands with stronger performance, with many now relying on asset sales to delever their balance […]
Mid caps: A time to shine?
In recent weeks, concerns around the breadth and sustainability of the mega-cap narrative have grown. The Magnificent Seven took a tumble and in their place hitherto unloved small-caps stocks went on a tear. But perhaps the market rotation means mid-cap stocks can now have their time in the sun? We believe mid-cap companies can combine […]
The Fed’s balancing act
One way US Federal Reserve leaders stay on message is to repeat words. Chair Jerome Powell certainly does, though sometimes the soundbites come back to haunt him – remember “transitory”? In the last few Federal Open Market Committee (FOMC) meetings, he struck a cadence with “confidence”; at 31 July’s post-meeting press conference, it was “balance.” […]
A week is a long time in markets
market snapshot
Why investors should take another look at China (through a contrarian lens)
Fast reading Chinese equities have begun to rise from multi-decade lows, perhaps presenting an attractive entry point with potential for long-term outperformance. The multi-year sell-off has created an abundance of opportunities across a wide range of attractively-valued companies. Our approach is well-suited for a dynamic and volatile market which provides opportunities to generate alpha by […]
Beckoning frontiers in emerging market debt – prospecting for attractive potential
EMD report Q2 2024
Who gets the keys for the policy road ahead?
The summer travel season reminds me of family car trips that seem a bit longer on the return home after a vacation. Similarly, the Fed’s extended pause and anticipated arrival at a terminal rate has seemed, well, interminable. At the beginning of the year, markets were starry-eyed children expecting a quick trip (several interest rate […]
How might investors withstand ‘AI FOMO’?
Video transcript The story of the equity market over the last 18 to 24 months has been the dramatic outperformance of the Magnificent Seven stocks, largely because of this AI FOMO trend that’s been going on, artificial intelligence, fear of missing out. So those seven stocks over the last 18 months are probably up 120% […]
