GDP Leaves False Trail in Emerging Equities

Morgan C. Harting (pictured) and Nelson Yu Many investors in emerging markets (EMs) believe that identifying the fastest-growing economies is the key to finding higher returns. But while this approach has been effective in fixed-income investing, our research shows that it’s fairly useless for guiding country selection in developing-market equities.

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Time to Rethink China’s Equity Markets

Plans for a new Shanghai-Hong Kong trading system are among three developments that we expect will give a boost to China’s equity markets in the medium to long term. So despite concern about the economic outlook, now could be the time to begin rethinking China from an investment perspective.

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Brainpower: Man vs. Machine

Throughout history, humans have been the most intelligent beings on earth. But is this about to change? The advancement of neural networks could be the single most important development in helping machines think more like humans. Investors should take note.

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Does Stock Picking Still Work in Emerging Markets?

Many things have changed in emerging markets (EMs) over the last two decades. Markets are more efficient than they used to be. But we believe that developing countries still provide fertile ground for finding stocks poised to outperform.

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Power Reform Shines a Light on Nigerian Stocks

By Henry D’Auria (pictured) and Christine Phillpotts Nigeria is Africa’s biggest economy and one of the world’s largest oil and gas producers. Resolving its electricity-generation gaps could significantly boost the country’s economic growth—and provide opportunities for equity investors.

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Equity Shock Absorbers Pass October Test

Kent Hargis (pictured) and Chris Marx After nearly nine months of calm, equity market volatility has returned and is threatening investors with the prospect of losing money. We believe the recent episode in US and global stocks reinforces the case for having a strategic allocation to equities that can withstand shocks.

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After the Beta Trade in Emerging Markets

Sammy Suzuki (pictured) and Morgan Harting It’s getting harder to generate equity returns in emerging markets (EMs). Simply chasing the index—the so-called beta trade—won’t do the job anymore. But with a more discriminating, active approach, we believe investors can still capture opportunities in the next phase of the EM growth evolution.

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Are Asia ex Japan Equities Primed for a Comeback?

Stuart Rae (pictured) and Rajeev Eyunni As developed-market equities continue to scale multiyear highs, their emerging-market counterparts—most notably Asian ex Japan stocks—have been more hesitant. Is it time for investors to take a closer look at the region?

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Avoiding Short-Term Gains

Want to reduce tax on your investment income? Avoid sales of appreciated stocks held less than a year. Here’s how it might have helped some disappointed Facebook shareholders earlier this year.

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Asian Tastes Add Spice to Consumer Industry Returns

Asian consumers are proud of their distinct tastes and traditions. That puts homegrown restaurant franchises and consumer companies with a deep knowledge of local appetites at the top of the food chain. In our view, they stand a good chance of staying there, even as competition from global franchises and brands picks up.

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