Japanese Equities—A Force Awakens
From inflationary tailwinds for earnings growth to corporate reforms that unlock shareholder value, multiple regime shifts are underway to restore the appeal of the Japanese equity market, according to the Templeton Global Equity Group team.
A Predictable Pullback in Equity Markets
Downside equity market volatility can be unsettling, but it is important to put the pullback in perspective and identify the drivers of the negative market reaction. First and foremost, the equity market was due for a modest pullback.
Rocking with RAFI: International Evidence
With negligible incremental risk, a RAFI Global Index hypothetically outperformed a Cap-Weighted Global Index by 40 bps per annum and a Cap-Weighted Global Value Index by 2.2% from 2007 to 2022—a 16-year period covering the long value rout and its aftermath.
S&P Global US Manufacturing PMI™: Slower Contraction in September
The September S&P Global US Manufacturing PMI™ rose to 49.8 from 47.9 in August, signaling only a fractional decline in operating conditions. The September reading was higher than the expected 48.9 reading.
Why Central Banks Will Soon Lend to Hedge Funds
Hedge funds are in regulators’ sights again. Their risk-taking with borrowed money must be better monitored and will sometimes have to be limited, the head of a global group of supervisors told the Financial Times last week.
Market Stress Rises Over Wild Week Ahead Even Without a Shutdown
Investors have shown few signs of panic during a stock market slump that’s pushed the S&P 500 Index into its first losing quarter in a year. But beneath the surface, signs of stress are emerging that go far beyond the just averted US government shutdown.
CPI and PCE: Two Measures of Inflation and Fed Policy
The BEA's core Personal Consumption Expenditures (PCE) Price Index for August shows that core inflation continues to be above the Federal Reserve's 2% long-term target at 3.9%. The August core Consumer Price Index (CPI) release was higher, at 4.3%. The Fed is on record as using core PCE data as its primary inflation gauge.
2 Active ETFs to Help Shield Against Volatility
The S&P 500 has fallen almost 3% within the past month, highlighting the volatility that typically hits at the end of the summer. For volatility through the end of 2023, investors may want to consider two active ETFs from American Century.
Stress Testing the Foundations: Analyzing the Vulnerability of Us Banks To Falling Commercial Real Estate Values
The commercial real estate sector’s continued challenges could potentially impact US banks. Franklin Templeton Fixed Income’s Shawn Lyons discusses the ongoing commercial real estate crisis and how US banks are safeguarding themselves against these issues.