Managing Currency Risk Is Crucial for Emerging-Market Investments, Too

Mexican equities have far outperformed Chinese equities over the past 20 years, although China’s economy has left Mexico’s in the dust. Why? China managed its currency tightly, Mexico did not. For more on the relationship between GDP growth and equities—and the investment implications—see my colleague Morgan Harting’s guest post on FT.com. This post contains links to [...]

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A “Go” Signal for Equity Outperformance

Given the skimpy yields on bonds, the opportunity in equities has rarely been more provocative, at least according to one fairly reliable indicator, as my colleague Gerry Paul ably argues below.

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Income Investing Takes Homework, Too

Equity-income investing can be highly rewarding, but it is not without its potential pitfalls. The rules of careful stock-picking still apply.      

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Technology Stocks: Not Necessarily Cyclical

We see two compelling drivers of strong growth for tech stocks ahead, even if the economy weakens, as my colleague Scott Wallace explains.

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More Emerging Markets, Less Volatility?

The steep drop in returns for emerging-market stocks this year—even worse than the drop for  developed-market stocks—provides a useful reminder that the asset class remains risky, despite its many attractions. How can investors capture the strong economic and earnings growth in emerging markets without taking on so much risk? I see two ways: One is [...]

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Do Investors Really Think Earnings Are Going off a Cliff?

Investor concerns about the future of global and US economic growth and corporate profitability are understandable. But corporate profitability has never been as low as the equity risk premium (ERP) now suggests. Thus, we believe the long-term upside potential in equities is extraordinary, as my colleague Joseph G. Paul explains in the article below.

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Is Active Management Dead?

Active equity managers have had an extraordinarily difficult time delivering premiums over the last year, especially managers with a bottom up approach focused on corporate fundamentals. (Active strategies driven by macroeconomic concerns have done better recently.) Here’s why we think active strategies driven by corporate fundamentals are down, but not out—as ably explained by my [...]

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