In the new reflationary regime, we expect asset classes to move less in tandem. This means investors with overdiversified portfolios may be at risk of losing out on risk-adjusted returns. However, weaker correlations also suggest portfolio success will be dictated by active investors selectively seeking more growth assets
Jerome Powell tended to side with Janet Yellen when he was a Fed Governor. When he takes her place in February, another aspect of a Fed Chair’s leadership abilities is likely to emerge.
With its economy on solid footing and companies focusing more on shareholders and corporate governance, Japan offers attractive opportunities for equity investors.
The worldwide market rally continues, but a messy Brexit, European regional autonomy movements, and a potential increase in Japan’s consumption tax remain as risks.
As expected, the European Central Bank (ECB) announced a reduction in its monthly asset purchase program and left policy rates unchanged. Here’s how we read the tea leaves.