Earnings growth has been a driver for emerging markets in recent years. Now, amid a backdrop of trade conflicts and political & economic uncertainty in some quarters, earnings downgrades appear to give investors pause for thought.
Above the Noise
The days of treating ESG as a choice are numbered
There is a widely held belief that emerging markets (EM) are vulnerable to U.S. dollar strength. We're not convinced.
To what extent can an investor enjoy the growth of a select pick of emerging market companies, while taking methodical steps to avoid as many unrewarded risks as possible? Kim Catechis, head of emerging markets at Martin Currie, gives his take on the challenge.
Price-to-book ratios for Asian equities are well below the long-term average, even after January's bounceback in valuations.
Chart of the Week
Chart courtesy of Clarion Partners. * Source: CBRE-EA, Clarion Partners Investment Research, Q3 2018, latest available figures. Past performance is no guarantee of future results. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
Chart of the Week
U.S. consumers had a downbeat December; China-U.S. trade talks were set to reconvene in Washington; Mexico's Pemex got yet more help; U.K. clothiers discounted deeply, pre-Brexit
Makers of semiconductors are seeing valuations hit amid a cyclical downturn, but the future long-term growth picture remains intact.
The outlook for European stocks appears more mixed than a year ago -- with similar potential for both very good and very bad outcomes based on the macro environment.
The sustainability credentials of the US$1.3 trillion global fashion industry are coming under heightened scrutiny.
Online gaming could once have been dismissed as a niche market for investors, but the explosive trend is now impossible to ignore. Much of the growth is coming from Asia.
Emerging Market Equities
Since its launch in 2009, Alibaba’s Singles Day has become the world’s largest shopping event. This year it expanded to six South East Asian countries and set new sales records.
It’s been a challenging few months for emerging markets (EM). Unsurprisingly though, as active fundamental managers we see the dislocation between negative market reactions and the actual long-term drivers of growth in the asset class as a compelling opportunity.
Markets around the world have fallen sharply so far in October, shaking investors out of their comfort zone. Why is this happening?
Navigating Emerging Markets
Only a few months ago, NAFTA (the North American Free Trade Agreement) looked dead in the water. The US seemed hell-bent on walking away from the 24-year-old deal, while Canada and Mexico were unwilling to concede any ground.
After the longest US bull market in history, some caution should be taken on valuations.
Trade is the topic du jour, with Washington having set off an apparent chain reaction in its push to extract concessions from trading partners, whether it be China, its North American Free Trade Agreement peers, the EU, or more lately – Turkey.
Blind reliance on companies' environmental, social and governance (ESG) ratings is problematic for investors. Individual companies can receive different scores depending on the ratings provider, while some companies can look better than others simply because they have more resources devoted to reporting.
Global Equity Income
Anemic wage growth in the US has been a central concern of economists in recent years, in no small measure due to its dampening effect on consumption. However, fast forward to the summer of 2018 and the situation is changing rapidly, driven by the tightening labour market.
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