The Factor-Based Investing Channel

Matthews Asia - Opportunities in Emerging Markets

The emerging markets (“EM”) equity asset class has evolved considerably over the past decade such that many active EM equity managers may find it challenging to create long-term alpha over the benchmark. Countries such as China and India are moving to the fore, historical drivers of growth are changing and technology, innovation and health care are becoming a larger part of the opportunity set. It has been difficult for EM investment teams to keep up with these changes. My guest today, David Dali, wrote those words in a recent commentary, and we discuss how he and his team are positioning to adapt to that changing landscape.

Expecting a Market Downturn? Make Sure You’re Following the “Noah Rule”

Predicting a major economic or financial event—whether that’s a recession, market downturn or even your own retirement—requires that you also take action. Otherwise your prediction was meaningless.

Underlying Inflation Gauge: November Update

The latest full set UIG for November is 2.35% while the prices-only measure is 2.10%. Current Headline CPI is now 2.05% and Core CPI is 2.32%.

UK Election: Will Tory Victory Bring Investors Back to UK Equities?

As widely expected, the Conservative Party emerged victorious in the UK general election. Our Colin Morton anticipates UK equity markets will welcome the outcome, but cautions that some uncertainties remain.

What Boris Johnson’s Election Victory Means for UK Assets

We expect to see flows back into UK equity and credit now that some of the Brexit uncertainty has been removed.

The Big Four Economic Indicators: November Real Retail Sales

Month-over-month nominal sales in November increased by 0.2% (0.19% to two decimal points). Real Retail Sales, calculated with the seasonally adjusted Consumer Price Index, decreased by 0.1% (0.07% to two decimal points).

Fed Holds Rates Steady, as Expected

The Federal Reserve left interest rates unchanged, as expected; while signaling rates would stay in their current range through next year.

The 2020 Economic Outlook

U.S. economic activity is expected to remain mixed in 2020, with moderate strength in consumer spending and general softness in business fixed investment and manufacturing.

Fed on Hold

No one expected the Federal Reserve to change short-term rates today and no change was made. Meanwhile, the Fed made no significant changes to its policy statement and the statement was unanimous.

Household Incomes: The Decline of the "Middle Class" 2018 Update

The median household is the statistical center of the Middle Class. In terms of income, this class has not gained much in recent decades. Let's take a closer look at a troubling aspect of the Census Bureau's latest annual household income data, issued in September. In this update, we'll focus on the growing gap between the median (middle) and mean (average) household incomes across the complete time frame of the Census Bureau's annual reporting, which began in 1967, to the release of the annual data for 2018.

The Right Way to Value Growth Stocks: Part 3

In part 2 of this series I focused on how to value slow and moderately growing businesses. In this article, Part 3, I will shift my focus on how to value faster growing companies (growth stocks).

Troubled Times Can Give Birth to Opportunity

Asia goes into the global deceleration with already-lean companies and a valuation advantage.

Changing Speeds?

A review of last month’s market-moving events across countries and asset classes.

China A-Shares: An Opportunity in Strategic Exposure

Why should investors pay attention to the China A-share market? We explain why we believe the opening of one of the most liquid and diverse markets in the world has profound implications for global portfolios.

Three Highlights from the MarketCounsel Summit

MarketCounsel’s Summit, held earlier this week in Miami, lived up to its reputation as the “all-star game” of financial advisor conferences, attracting top-level executives from throughout the investment industry. Here are three highlights from Tuesday’s sessions.