Emerging-market stocks are showing signs of life amid hints of earnings improvements. Where should investors look?
Sour sentiment toward emerging-market stocks is obscuring uncommon opportunities for equity investors.
Emerging-market equities have a bad rap. But a lost decade may have set up promising conditions for a recovery.
For over a decade, emerging markets (EMs) have been full of promise—and disappointment. Year after year, investors have waited for the powerful growth trends of the past that drove developing markets from Mexico to Malaysia to reassert themselves.
Investors in emerging markets (EM) have endured a decade of poor performance. But things may be changing. Based on The Economist magazine’s data comparing hamburger prices across countries, many EM currencies look cheap today—as they did 20 years ago before an extended rally of EM stocks and bonds.
During this period of economic uncertainty and market stress, investors may be surprised to discover how a strategy targeting stocks that lose less in a downturn can beat the market over time.
Equity investors are anxious about the future after sharp market declines in the first half of 2022.
Three powerful forces have unleashed a volatility storm in stock markets this year.
Equity markets were jolted in January amid growing concerns about macroeconomic threats.
Equity investors focused on a low-carbon strategy needn’t compromise on company fundamentals. When quality and compelling valuations are equally considered, joining the global fight against climate change and generating strong return potential can work hand in glove.
Defensive stocks are often misunderstood. In recent years, even when they have delivered strong and steady earnings, returns have disappointed.
Across the industrial sector, low-carbon investing naturally leans toward renewable energy opportunities, like wind and solar power.
The exit from the pandemic will be bumpy. Defensive stocks with attractive valuations can help provide balance through an uncertain recovery.
Global stocks rebounded sharply from the coronavirus market crash in 2020, but the ride was rocky. With so many risks clouding the outlook, we believe that investors should focus on generating a smoother pattern of returns through the recovery from COVID-19.
Emerging-market stocks rebounded in 2020 even as the COVID-19 pandemic spread globally. As vaccines and other favorable conditions unfold, investors have good reasons to consider EM equities in 2021 while strategically considering their potential risks.
Defensive equities are usually found in sectors that have withstood market shocks, such as utilities and real estate. But as COVID-19 shakes up investment conventions, companies with intangible assets are being more appreciated for their volatility cushion.
Investing in businesses that strive for a better climate through decarbonization doesn’t necessarily assume a lower bar for performance. Just the opposite. Besides contributing to a healthier environment, low-carbon equity investing can also offer attractive return potential.
Several equity factors diverged significantly from their typical performance patterns during the COVID-19 crisis. By understanding how factor returns behaved in this market correction relative to their historic norms, investors can not only prepare for future volatility but also take advantage of short-term market dislocations.
Following these guidelines can help equity investors navigate the uncertainty created by the COVID-19 pandemic when selecting stocks and positioning portfolios.
Even as global stocks climbed in 2019, market volatility persisted. By some measures, lower-volatility stocks now look quite expensive. But in fact, high-quality stocks that can help protect portfolios can be found at reasonable prices, if you know where to look.
Rejoice—people around the world are living longer! But pause the festivities—that means they need more retirement money. To ensure they don’t run out of cash, savers need to adjust their investment strategies as their needs change, both before and after retiring.
Why should emerging-market investors exercise caution in a rising market? With big unresolved challenges, we think it’s prudent to target companies with solid fundamentals and stable business models to overcome macroeconomic uncertainty and build a resilient portfolio for the long-term.
Global stocks rebounded in the first quarter, but the ride was rocky. Even in a rising market, volatility is a clear and present danger. With so many risks clouding the outlook, we believe that investors should focus on generating a smoother pattern of returns.
Recent volatility reminds us that new risks are testing standard defensive equity strategies. Portfolios that offer downside protection need to go beyond standard risk models and position themselves for changing challenges ranging from trade wars to European political instability.
Investors in emerging-market (EM) stocks have taken a big hit as Turkey’s crisis has escalated. But a closer look inside the EM benchmark suggests that the entire developing world isn’t broken.
Technology stocks are widely seen as powerful return drivers—with a lot of volatility attached. But surprisingly, shares of many companies that enable the technology revolution can provide solid returns and even downside protection.
China is rapidly becoming a trendsetter in many digitally driven industries. This is turning conventional research methodology on its head. Investors should look to China to discover where technology and retail markets around the world are headed.
Changing market conditions over the last five years have taught us a few things about managing risk. The most important lesson? Delivering downside protection constantly requires refining and adjustment.
Emerging-market (EM) equities posted a strong recovery in 2017 after several tough years. But it’s not too late to invest. We think there are still good reasons to add or increase EM exposure in 2018.
So the diversity within emerging markets and the lack of transparency within emerging markets is exactly what excites us as stock pickers.
Emerging market (EM) equities have had a great run recently. But don’t buy EM stocks indiscriminately. Focus on company earnings over macroeconomic trends to find stocks that have stronger return potential with reduced risk.
From nuclear tensions with North Korea to turmoil on the streets of Charlottesville, political risks have been hovering over equity markets again. We think investors should be on alert for a potential resurgence of volatility.
Disruptive forces are wreaking havoc across the global business world. But not all disruption is fatal. Lots of companies are facing the threat—and thriving. We think they deserve more credit than investors are giving them.
Great companies can come from anywhere, and emerging markets have more than their fair share. We’ve identified three megatrends we expect to give birth to tomorrow’s superstars—and that no globally inclined portfolio should be without.
Stable stocks are out. Riskier reflation plays are in. But who knows which way fickle market winds will blow tomorrow? That’s why strategies that harness stability and good judgement never go out of style.
Though stable stocks are expensive and look vulnerable to rising interest rates, we still see ways to build a winning defensive portfolio. But it’ll take some unconventional thinking.
Investors are increasingly using passive portfolios to boost exposure to emerging markets and keep volatility under control. We see better ways to reduce the risks while sourcing returns from across the developing world.
