September 11, 2018 Diagnosing Healthcare Stocks by Vinay Thapar While many investors in healthcare stocks may try to focus on predicting scientific outcomes, we take a different approach. We look at the return on invested capital (ROIC), and that’s how we find opportunities. Equities Likes 0 SHARE Bookmarks
September 07, 2018 Rising Brand Power Boosts China’s Investment Appeal by Laurent Saltiel, Sergey Davalchenko, Naveen Jayasundaram, Kate Huang China is often seen as a source of low-cost manufacturing. Yet today, many Chinese companies are building world-class brands that are overtaking global competitors at home—and are not fully understood by investors. Emerging Markets, Equities Likes 0 SHARE Bookmarks
September 04, 2018 US Stocks: Three Reasons to Invest Now by David Wong, Scott Krauthamer US stocks continue to pose big questions for investors. After nine years of strong gains, concerns about market conditions are rife. But we think US stocks are more attractive than perceived for three main reasons. Equities Likes 0 SHARE Bookmarks
August 30, 2018 How Contagious Is Turkey? by Morgan Harting, Christian DiClementi The Turkish lira has dropped 38% as of August 28, putting pressure on inflation as well as the country’s debt-heavy corporations and banks. Investor jitters have spread over the past week to some other emerging markets and European banks with Turkish exposure, but we don’t expect contagion to expand much further from here. Currency, Emerging Markets, Fixed Income, Multi-Asset, Volatility Likes 0 SHARE Bookmarks
August 27, 2018 Imbalance of Trade: What Trade Wars Mean for Market Stability by Douglas J. Peebles Reduced global trade may have the unintended consequence of strengthening the US dollar, raising interest rates and pushing down stock prices. Together with tighter Federal Reserve policy, these developments may increase market turbulence. Currency, Fixed Income, Trade Wars, Volatility Likes 0 SHARE Bookmarks
August 21, 2018 Reading the Signs: Investment-Grade Bonds Present Warning and Opportunity by Gershon Distenfeld US investment-grade corporate bonds look cheaper today than their lower-quality counterparts in the high-yield market. Is this the buying opportunity of a lifetime? Not exactly. A closer look reveals there’s actually method to the madness. Fixed Income, Rising Rates, Volatility Likes 0 SHARE Bookmarks
August 21, 2018 With Stocks, Short-Term Is Short-Sighted by Frank Caruso Asset prices have far outstripped the underlying fundamental performance of many businesses, and that may pose challenges for investors now that developed economies are beginning to normalize interest rates. Equities, Rising Rates Likes 0 SHARE Bookmarks
August 15, 2018 Will Chinese Renminbi Destabilize Markets as Trade Wars Escalate? by Mo Ji The trade war between Washington and Beijing has tipped China’s currency onto a path of destabilization. If hostilities escalate, China may let its renminbi (RMB) fall further. For investors, that could mean more volatility and tighter financial conditions. Currency, Economics, Emerging Markets, Fixed Income, Trade Wars Likes 0 SHARE Bookmarks
August 14, 2018 Inverted US Yield Curve? Recession? Not So Fast by Eric Winograd Many investors have started to scrutinize the shape of the US Treasury yield curve, worried that a potential yield-curve inversion would mean imminent recession. In our view, things aren’t that simple. Economics Likes 0 SHARE Bookmarks
August 14, 2018 Under Siege: How Trade Wars Affect the World’s Major Automakers by Douglas J. Peebles, Robert Schwartz From steel to engines to whole cars, tariffs are shifting the playing field for automakers. Our credit analysis suggests there are no winners in this war: consumers should expect higher sticker prices, companies lower earnings and investors more volatility. Economics, Fixed Income, Policy & Regulation, Trade Wars Likes 0 SHARE Bookmarks
August 08, 2018 EM Stocks in the Time of Trade Tantrums by Stuart Rae Trade war’s becoming a bigger source of concern amongst investors, particularly in emerging markets, because a lot of those economies are very trade dependent. But there’s a difference between the first-order effects, the categories that are actually under trade restriction or trade tariffs now, and what might be happening in future. Emerging Markets, Equities, Trade Wars Likes 1 SHARE Bookmarks
July 31, 2018 Should Equity Investors Lose Sleep Over the Yield Curve? by Kurt Feuerman A single line chart is keeping an awful lot of investors up at night: the US Treasury yield curve. It’s been flattening steadily since the end of 2016 and is nearly the flattest it’s been since 2007. We all remember what happened after that. Equities Likes 0 SHARE Bookmarks
July 25, 2018 US Stocks: The Price Isn’t Right by Frank Caruso There are lots of price-insensitive equity investors today competing for performance. And that’s pushed many strategies to disregard the underlying business as they pursue short-term stock returns. We think it’s important to focus on fundamental research and know the businesses you invest in. Equities Likes 0 SHARE Bookmarks
July 24, 2018 Debt Hangover Looms After US Borrowing Binge by Scott Krauthamer, Walt Czaicki US companies, lured by historically low interest rates, have taken on massive amounts of debt in recent years. As rates begin to rise, investors should beware of companies that might be vulnerable to increasing financing costs. Equities, Rising Rates Likes 0 SHARE Bookmarks
July 23, 2018 An Open Letter to European CEOs: Work with Us, Not Against Us by Sharon Fay, Tawhid Ali, Andrew Birse European companies often see engaged equity investors as the enemy. But there’s a new breed of activist investors who aren’t aggressive and share the same long-term interests as management. Let’s work together toward the best outcome for all stakeholders. Equities, Responsible Investing/ESG Likes 0 SHARE Bookmarks
July 20, 2018 Midyear Outlook: What a Trade War Could Mean for the Bond Markets, and More by Douglas J. Peebles We answer some of today’s most pressing investor questions—from the effect of trade wars with China to our expectations for rising rates and a correction in high yield. Fixed Income, Rising Rates, Trade Wars, Volatility Likes 0 SHARE Bookmarks