Global stock markets seem to be defying the reality of recessions this year. Despite recent volatility, we think market gains for the year are more rational than perceived, given the powerful impact of stimulus and low rates on stock valuations.
In a world of uncertainty, many investors choose to diversify, rather than investing in a concentrated strategy. But this year, a portfolio of just the five largest US stocks would have significantly outperformed. So, is there a way to reduce risk and to capture long-term growth in a concentrated portfolio?
In the midst of a historic crisis, it’s hard to see through the fog. But investors who ask the right questions now will be able to identify companies that can make it through.
As we enter a period of lower growth globally, investors have given higher valuations to companies that can achieve consistent growth. This seems logical, but are we in danger of overpaying?
Today, ESG issues may be more prominent in investors’ minds and approaches, but quality investors have been asking these questions for some time.
Investors are increasingly asking whether the macroeconomic growth cycle still exists, and, if so, where are we in it? The answers to these important questions have real implications for the way equity investors should think about their portfolios.
When people talk about Japan, they often do so in the context of ‘lost decades’ and warnings of limited growth opportunities. Nearly one-third of the population is over age 65, inflation is stubbornly low and predictions for future economic growth are not encouraging.
There are many ways to apply responsible investing principles to portfolios. But some investing approaches may be more conducive to creating a portfolio with strong environmental, social and governance (ESG) qualities than others. Concentrated equities are a case in point.
Investors shouldn’t avoid risk: it’s how you generate return. One solution is to find good companies that have the right risks for the right reasons and for the right time horizon. With a concentrated portfolio, you can spend more time on fewer companies, get to know them better and see if they’ve got a great runway for growth.
n today’s low-growth, low interest-rate environment, investors should be patient, and look for opportunities to use volatility to get into desirable investments at the price you’re willing to pay.
Equities declined around the world in 2018, and valuations fell sharply. The risks are clearly significant—but have stocks fallen too far? With earnings still expected to advance this year, we think selective investors can find attractive entry points.
Finding high-quality companies is an essential component of many equity strategies. But with revolutionary forces sweeping through key industries, what really defines quality stocks? Investors must think proactively about how to identify quality in a changing world.
Investors all over the world often prefer to stay in their home markets. But at what cost? Going global can open up a world of choice to help improve a portfolio’s equity risk and return profile.
US economic policies have always mattered to international investors. While President Trump’s agenda is still taking shape, equity investors can already map out broad guidelines for identifying winners and losers among companies outside the US.