Forbes (October 4)
“The bulls charging through Shanghai are beginning to look over their shoulders. Gaining on them is economic reality.” The 30% surge in equities since hitting their September low may be “overdone. The problem is an underlying economy facing intensifying headwinds. And one failing to keep pace with the sudden surge in investor optimism toward China.”
Tags: 30% surge, Bulls, Economic reality, Economy, Equities, Headwinds, Investor optimism, Overdone, September low, Shanghai, Underlying
Bloomberg (August 11)
“Japanese equities shed $1.1 trillion in value as they kicked off August with a record three-day loss.” Having some of the froth knocked off, however, is providing bullish investors with “a fresh reason to buy what has been one of 2024’s hottest trades.”
Tags: $1.1 trillion, 2024, August, Bullish, Buy, Equities, Froth, Investors, Japan, Loss, Reason, Record, Shed, Value
Investment Week (December 7)
“Japanese equities are comfortably multi-asset teams’ most favoured asset class according to our sentiment indicator. Its economy continues to be viewed as being relatively sheltered from the effects of interest rate rises seen elsewhere.”
Tags: Asset class, Economy, Equities, Interest rate, Japan, Most favoured, Multi-asset teams, Rises, Sentiment indicator, Sheltered
Institutional Investor (July 18)
“The cyclically adjusted price-to-earnings ratio for emerging market equities is 15x, compared to 27x for those in developed markets and 34x for those in the U.S.” At just above 10x, “China is trading at a significant discount,” but investors can also easily “steer clear of China.” Other emerging market opportunities “worth considering” include Korea, Brazil, Malaysia, Hungary, Thailand, Mexico, and much of Latin America where P/E ratios range from 10x to 25x.
Tags: Brazil, China, Cyclically adjusted, Developed markets, Discount, Emerging markets, Equities, Hungary, Investors, Korea, Malaysia, Mexico, P/E ratio, Thailand
Investment Week (January 23)
“Chinese equities took a beating in the year of the tiger, with the collapse of the nation’s property market, stringent restrictions on some of its sectors and its zero-Covid policy all hampering investor interest.” In contrast, the year of the rabbit is beginning “in a remarkably different place…. Dynamics are now shifting in a favourable direction, benefiting Chinese stocks and global growth.” Nevertheless, “investment experts remain wary and advise caution.”
Tags: Caution, China, Collapse, Dynamics, Equities, Experts, Favourable, Growth, Investor, Property market, Rabbit, Restrictions, Stocks, Tiger, Zero COVID
Real Money (August 17)
“Japan marches to the beat of a different drummer. And its pace, slow and steady, is looking solid as much of the rest of the world contends with the din of roaring inflation and clanging recession.” In contrast, Japan’s “inflation is running at a mild and manageable 2.4% as of July” and Japan looks poised for “steady multiyear growth…. Japanese equities therefore continue to justify themselves as safe havens.”
Tags: Different drummer, Equities, Inflation, Japan, Manageable, Multiyear growth, Pace, Recession, Safe havens, Slow, Solid, Steady
Institutional Investor (May 25)
“Managers that want to run fixed-income funds with a focus on environmental, social, and governance factors face larger research challenges than those in stocks. But the massive opportunity in bonds may make the uphill battle worth it.” Compared to equities, the “patchwork of standards” increases the “risks of ESG fixed income funds.”
Tags: Bonds, Challenges, Equities, ESG, Fixed income, Funds, Managers, Opportunity, Patchwork, Research, Risks, Standards, Stocks, Uphill
Seeking Alpha (January 17)
America has become “an attractive sponge to absorb capital from everywhere. As a result, the US stock market capitalization currently represents 61% of the global stock market capitalization, despite the fact that US GDP is only 23% of global GDP.” US equities also “now represent about 200% of US GDP, which is an all-time high.”
Tags: Absorb, Attractive, Capital, Capitalization, Equities, GDP, Global, Sponge, Stock market, U.S.
Bloomberg (September 1)
“European equities advanced the most in a month on Wednesday as investors bet the global economic rebound would persist even as central banks prepare to scale back support.” August marked the seventh consecutive month of advances for the Stoxx Europe 600 Index, its “longest winning streak since 2013.”
Tags: Advanced, Central banks, Economic, Equities, Europe, Investors, Rebound, Stoxx 600, Winning streak
Investment Week (May 18)
“Credit fundamentals have worsened since the market sell-off began, although central banks could provide some companies with a soft landing and many firms have drawn on their credit lines in a bid to stay afloat.” Even though “the impact is highly correlated across geographies, industries and asset classes…the potential outcomes are too severe to only affect equities and credit-market fundamentals have undoubtedly been impacted.”
Tags: Asset classes, Central banks, Correlated, Credit, Equities, Fundamentals, Geographies, Industries, Market, Outcomes, Sell-off, Severe, Soft landing, Worsened
