Content (71)
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White papersThe Active Advantage in High Yield
There is a strong case to be made for active management in high yield bonds, in our view, with an active approach offering several advantages. Active management allows for fundamental analysis and security selection across the full high yield universe as well as the ability to nimbly reposition a portfolio to take advantage of macro trends.
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White papers
A New Dollar Smile: Where Next for the U.S. Dollar?
Following decade-long appreciation, the TRP USD index has reached historically high levels, raising questions as to whether the U.S. dollar may be vulnerable to a possible rapid reversal. In this article, we explore the key drivers of forward (or subsequent) U.S. dollar returns, focusing specifically on those effects within extreme dollar return environments.
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White papers
The 2023 Inflation Outlook
Inflationary pressures have been a headwind for financial markets, so recent reports showing a declining trend in prices have been encouraging to investors. While moderating inflation may slow—or even pause—Fed hikes in the near term, we believe that an interest rate cut is unlikely if inflation settles above the Fed’s 2% target.
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White papers
Global Market Outlook 2023 – The Need for Agility
Heading into 2023, capital markets have priced in a significant economic slowdown. Equity valuations have improved, but earnings estimates may be too optimistic. The 2022 bear market pushed yields to the most attractive levels since the global financial crisis. The world isn’t “deglobalizing,” but structural changes could create opportunities.
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White papers
Strong Growth Now May Not Mitigate a Recession Next Year
Central bankers appear to believe that current growth momentum in Europe and the U.S. should provide some protection against a recession in 2023, but history suggests this assumption is flawed. If central banks end up downgrading growth expectations, risk assets will likely underperform and the yield curve can be expected to flatten.
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White papers
The Regime Change in Markets Demands Fresh Ideas
A paradigm shift is taking place in investing. Fresh investment approaches are now required that cover wider macroeconomic, social, and geopolitical factors along with valuations and company fundamentals. While market dynamics have changed, alpha potential remains available for investors willing and able to adapt to the new era.
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White papers
Divided Government Likely to Usher in Legislative Gridlock
With Republicans expected to take control of the House, we anticipate limited legislative achievement in the next Congress but the potential for conflict between the political parties that could have economic repercussions. We believe it is important for investors to guard against making investment decisions based on election outcomes that could prove ephemeral.
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White papers
How Value Can Benefit From a New Investment Cycle
We are excited about the potential for a new capital investment cycle forming after many years of underinvestment. For value investors, this is an exciting development as increased spending can be a significant source of investment opportunities.
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White papers
The Regime Change in Markets Demands Fresh Ideas
A paradigm shift is taking place in investing. Fresh investment approaches are now required that cover wider macroeconomic, social, and geopolitical factors along with valuations and company fundamentals. While market dynamics have changed, alpha potential remains available for investors willing and able to adapt to the new era.
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White papers
Will Signs of Peak Inflation Bring About a Turnaround in “Growth” Stocks?
A potential peak in inflation expectations coincides with equity markets that have derated quite significantly, with some stocks trading at extreme valuations. This makes us more optimistic for equities as a whole and is an upgrade on our view versus much of 2022.
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White papers
Navigating the EU’s Sustainable Finance Revolution
Environmental, social and governance (ESG) investing has been one of the fastest-growing trends to hit financial markets, and the European Union (EU) has been the first regulatory block to comprehensively implement sustainable finance regulation. In this paper, we take a closer look at the EU’s new regulations and how they will affect investors.
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White papers
Tech Stock Valuations Have Become Reasonable
Although tech stocks have sold off steeply year-to-date and their valuations seem reasonable versus recent peaks, they are still not cheap when compared to the broader market. Given our continued caution toward this heavily growth-oriented sector, our Asset Allocation Committee recently added to growth stocks but remains underweight relative to value.
