All Equities articles – Page 49
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White papers*Mid-year outlook takeaways – Chronicle of a recession foretold*
Investor surveys, and now the US yield curve, indicate a high likelihood of a recession in the US. The question seems not whether there will be a recession, but when. Economist forecasts and earnings growth estimates, however, suggest a recession is not so certain. With growth already slowing more quickly than expected, markets are assuming central banks will not hike policy rates as much as was thought. But inflation may not fall enough to make that possible.
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PodcastForgo FOMO: Growth Investing for the Long Term
In light of the swings in today’s market environment, investors are shifting their asset allocation decisions to accommodate its volatility. As they grapple with what the options are, we look to growth stocks, which we believe have the potential to outperform the overall market over time though may require a higher risk tolerance.
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White papersEconomic and Market Review: Key Considerations for Equity Investors
We see increasing likelihood of a recession, but even if we avoid one, we think the coming months are going to feel like a recession as the decline in stock market valuations in the first half of the year are likely followed by a decline in corporate earnings in the second half.
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White papersBraving bear markets: 5 lessons from seasoned investors
Stock markets around the world have entered bear territory. The MSCI ACWI slid over 20% for the six months ended June 30, 2022. Today, many investors are focused on the likelihood of recession and more pain ahead.
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White papersFixing Defined Contribution: A five-pronged approach
In this paper, we provide a flavour of what needs to change if defined contribution (DC) outcomes in the UK are to improve materially and sustainably and good outcomes are to become the norm. Spoiler alert: it isn’t just the one silver bullet that’ll fix DC.
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White papersThe emerging markets hurdles
While not envisaging any systemic risk propagating across emerging markets, the macro financial outlook remains challenging amid growth concerns, still-high inflation and tighter global financial conditions. The current geopolitical environment, with its impact on macro and financial conditions, is making an idiosyncratic crisis more likely.
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White papersReasons for Optimism
Caution may be warranted during the uncertainty of the next quarter—but after markets have sold off so much, does it really make sense to be more pessimistic now than at the start of this year?
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White papersGlobal Investment Views - July 2022
Dramatic price action has taken place over the past weeks in equities and bonds, following hot inflation prints, central bank (CB) actions and rising concerns over economic growth. These events are a reminder of the regime shift, in which we are witnessing the resurgence of stagflationary risks and central banks trying to assert their credibility.
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White papersH2 2022 Investment Outlook - Life above zero: investors’ journey at a time of rising rates
We started the year with expectations of strong growth and high inflation throughout the first part of 2022. The Russia-Ukraine war accentuated the inflationary trend, now well above Central Bank (CB) targets, which is now set to persist longer than expected.
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White papersWhat will drive financial markets over the next five years?
Dividing a portfolio’s investments more or less evenly between developed market stocks and bonds has proved a rewarding strategy over the past few decades. The annualised return investors have secured by pursuing this approach has been in the high single digits – gains that have come courtesy of steady economic growth, an almost continuous fall in interest rates and inflation, and relatively calm financial market conditions.
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White papersWhat links impact investing and private equity?
In impact investing, investments can contribute to a measurable positive social and/or environmental impact alongside earning financial returns. In our view, impact investing strategies work particularly well in private equity.
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White papersWill value stocks continue to outperform expensive sector peers?
Value stocks have strongly outperformed their growth sector peers since late 2020, when they became as cheap as they were at the peak of the 2000 tech bubble. Although half of that advantage in valuations is now gone, we believe it still leaves plenty of room for an above-average performance by value stocks, especially when interest rates are rising in developed markets.
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White papersReimagining Supply Chains: The Investing Challenge
From carmakers to smartphone manufacturers, companies around the world are reorganizing their supply chains amid a wave of disruptions. Equity investors will need to sharpen their analytical tools and engagement skills to determine which businesses are proactively adapting to a new reality.
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White papersDescending From Extremes Is a Rocky Process
To understand the current volatility, it helps to get reacquainted with just how out of whack things were coming into 2022—in terms of both magnitude and timing.
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White papersA look under the surface of the first quarter earnings season
The excellent results of the first quarter also conceal weaknesses. Excluding energy, they remain positive but much less flattering, and companies are wondering about the future. Revisions are now expected to be on the downside, which does not rule out counter-trend rallies. Markets’ behaviour could be tricky. Remain cautious.
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White papersGlobal Investment Views - June 2022
The second quarter of the year is becoming increasingly painful for tech stocks, recalling memories of the 2000s tech bubble bursting. The repricing of a more aggressive Fed stance has been brutal, real yields rose – the rate on 10-year TIPS has turned positive for the first time since 2020 – and on the nominal yields front, the US 10-year Treasury yield temporarily reached the 3% threshold, falling close to 2.75% on economic growth concerns.
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White papersCapturing Persistent Growth in Volatile Equity Markets
Growth stocks are under acute pressure as rising interest rates change the dynamics that drive equity valuations. But market volatility shouldn’t distract investors. We believe companies that can deliver sustainable growth in a sluggish economy will ultimately be prized for their business benefits and investment return potential.
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White papersFixing the Internet, One Tweet at a Time
The likelihood that the E.U.’s Digital Markets and Digital Services Acts achieve their aims, and significantly alter the status quo for major internet companies, remains low.
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White papersMarket snapshot: Equities tumble as inflation reality bites
The latest US inflation data released this week sent ripples through markets, as investors took stock of the fact that despite the Federal Reserve’s efforts, consumer prices remain stubbornly high.
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White papersMarket snapshot: Slowdown fears send equities spinning
Many analysts are revising growth forecasts for China as strict lockdowns in the world’s second largest economy stymie business activity. A soft landing looks increasingly unlikely as central banks struggle to calibrate a policy response that addresses high inflation without killing the economic expansion.
