GDP Leaves False Trail in Emerging Equities

Morgan Harting

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

Stuart Rae

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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US Housing Rebound Puts Spotlight on Real Estate

Matthew D. Bass

With a US housing recovery in full swing, this may be a good time for investors to consider securities backed by residential real estate. We think they’re an attractive way to diversify exposure to high-yield bonds and other risk-seeking assets.

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Brainpower: Man vs. Machine

Benjamin Ruegsegger

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?

Sammy Suzuki

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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Rising Rates: The Great Pumpkin

Douglas J. Peebles

In late 2013, the 10-year US Treasury yield hit 3%, spooking investors who thought the bond bubble was bursting. Prognosticators urged investors to abandon bonds. And then—they waited.

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Global Bonds Beg the Currency Question

Alison Martier

With the US dollar poised to rise, there’s never been a better time to reposition into global bonds as your core mandate. But when you do, it’s critical to fully hedge that global portfolio against currency risk.

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Gauging the Spook Factor for Municipal Bond Investors

Michael Brooks

The muni market seems to be returning to normal after major outflows last summer, though several potential hot-button issues could still spook investors. We don’t think these represent major risks to market returns or properly positioned portfolios.

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Power Reform Shines a Light on Nigerian Stocks

Henry S. D'Auria

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

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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