The Metamorphosis of Emerging Markets
The relative performance of emerging markets has been unremarkable over the past decade, however meaningful changes have taken place in the fundamental and financial construct of the asset class that are relevant for asset allocators. Most notably, the composition of the index has seen dramatic shifts in sector, country, and stock constituents...
5 Things to Know About Emerging Markets
Emerging markets debt and equity have many overlapping traits, but also differ in their exposure to countries and risks. The MSCI Emerging Markets Index contains 27 countries, with the five largest accounting for 70% of market value. Three countries in Asia - China, South Korea and Taiwan - comprise more than 50% of the index.
Car Manufacturers Are Electrifying Copper, “The Metal of the Future”
As many of you know, copper is often seen as an indicator of economic health, historically falling when overall manufacturing and construction is in contraction mode, rising in times of expansion. That appears to be the case today. Currently trading above $3 a pound, “Doctor Copper” is up close to 24 percent year-to-date and far outperforming its five-year average from 2012 to 2016.
The Science and Art of Multi-Asset Investing
Generating consistent returns under uncertain conditions is a challenge. Can multi-asset strategies make the job a little easier? We think so. But a lot depends on how they’re designed.
Hoisington Quarterly Review and Outlook, Third Quarter 2017
The worst economic recovery of the post-war period will continue to be restrained by a consumer sector burdened by paltry income growth, a low and falling saving rate, and an increasingly restrictive Federal Reserve policy. Additionally, with the extremely high level of U.S. government debt and deteriorating fiscal situation, the economy is unlikely to benefit from any debt-financed tax changes. Finally, from a longer-term perspective, the recent natural disasters are an additional constraint on economic growth.
As the Earth Breathes
Three years to save Earth according to a group of United Nations scientists. Can 150 years of planetary abuse undo over four billion years of evolution? As the Earth breathes even climate neutralists concede probability may be at least a 51/49 percent proposition.
The Middle East Prepares for Economic Disruption
All cultures have the challenge of balancing the past and the present. But nowhere is the contrast between the two more apparent than in the Middle East.
The 19th Party Congress
On October 18th, the Communist Party of China (CPC) will meet for the 19th Party Congress. China’s leadership for the next five years will be determined at this meeting. In this report, we offer a background on China’s government, focusing on the difference between de jure (what is the official structure of China’s governance) and de facto(how it really works).
China's A-Share Market: More Investable than Skeptics Think
We explore the reasons we believe the A-share market has become more investable, including improved corporate governance and better disclosures, the ability of companies to create value for investors, company discipline around capital allocation and the fading role of state ownership in certain sectors.
Running Out of Freshwater
The world is running out of freshwater, and much needs to be done unless we want a crisis to turn into a catastrophe. Desalination will fix the problem, they say, but desalination is not an option open to all countries. A dramatic change in consumer habits and attitudes must also take place, and that takes time.
Tough Sledding in Multisector Bond Investing? It Depends on the Team
Versatile, relative-value analysis of securities across sub-sectors and hybrid asset classes can help fixed income teams negotiate a challenging, expansive, potentially rewarding terrain.
8 Takeaways From Allianz Global Investors’ New York Investment Forum
In early September, strategists, economists and portfolio managers from Allianz Global Investors convened in New York for its semi-annual Investment Forum. Their goal? To explore the way forward for clients in a world where taking risk is necessary to earn a return, but where opportunities are getting harder to find.
Could Driverless Cars Benefit Your Portfolio down the Road?
Science fiction is real. In October of last year, a self-driving semi in Colorado carried over 2,000 cases of beer from Fort Collins to a distribution center in Colorado Springs — a journey of over 130 miles. While there was a professional driver on board, he monitored the trip from the sleeping berth for most of the journey and never took the controls.
Oil and Gas MLPs: Time to Take a Fresh Look?
Master limited partnerships, once considered utility-like yield instruments, have come to be viewed largely as leveraged commodity investments – but is the pendulum about to swing back?
The Biggest Global Tax Break Ever Bubbles Up from Texas Oil Industry
Oil prices continue to remain low, however, thanks in large part to the ingenuity of Texas fracking companies. As I told Liz, this has served as a multibillion-dollar “peace dividend” that has mostly helped net importing markets, including “Chindia”—China and India combined, where 40 percent of the world’s population lives—Japan and the European Union.