Beyond Bulls & Bears

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Equity

Value Update: Where Is the Next Pocket of Opportunity?

"As the anticipated value rally gains steam, we think non-US stocks should begin to benefit. Like the value universe a year ago, non-US equities today look to us to be undervalued, under-owned, and exposed to positive catalysts, including improving corporate fundamentals, economic tailwinds and political and policy support.” - Templeton Global Equity Group

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Equity

Could the Rally in Global Equities Keep Rolling?

If a policy-driven boost to growth doesn’t materialize, the markets, which have moved on the possibility of real change, could reverse just as fast.

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Equity

What’s Driving US, European Voter Resentment?

Voters in a democracy often respond more to perception than reality, particularly when it comes to issues of patriotism, pride and identity. It isn’t always just about the bottom line.

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Value Unbound: The Implications of a Nascent Value Revival

During the (tech) bubble, all it took to topple tech stocks priced for perfection was a little bit of bad news. Just a little bit of good news may be sufficient today to spark a recovery among value stocks that seem to be pricing in permanent disappointment.

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Equity

Can European Banks Rebound from the “Triple Whammy”?

Although we expect banks will likely have to raise their loan-loss provisions for energy borrowers in the near term, we don’t believe it will significantly crimp their bottom lines.

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Alternatives

Oil’s Well That Ends Well?

With the modest-at-best global economic recovery after the still front-of-mind global financial crisis trauma from 2008-2009 … markets are understandably preoccupied with the scope for unpleasant shocks.

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On January Barometers and Market Bargains

We are now witnessing historic extremes in the discount afforded to value relative to growth, quality and safety. While this environment has been (and may remain) painful for some time, the eventual normalization of these extremes represents the most compelling opportunities in equity markets today.

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A Year for Value?

While stocks are certainly vulnerable to near-term volatility, we think the asset class globally remains well positioned for long-term performance potential.

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Greece’s Precarious Position

Given how fluid this situation is currently, attempting to assign probabilities to a Greek exit scenario remains a moving target on a daily basis.

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Buying Time: Why We Think M&A Is Here to Stay

In an environment of still-moderate global economic growth that may not promise great rewards for new investment or capital expenditure, the market appears more prepared to accept that well-thought-out M&A, financed by lower-cost capital and low interest rates, could be quickly accretive.

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2015 Asia Pacific Investor Forum Snapshot

To date, lower interest rates do not seem to have stimulated the domestic Australian economy. We think there’s probably more work to be done by the Reserve Bank, and therefore, we project yields will continue to decline, as likely will the Australian dollar.

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Active Opportunities in a Passive World

To stay in line with benchmark allocations, passive funds buy more of the stocks that get bigger while selling the stocks that shrink. By doing so, they are perpetually rotating away from cheaper stocks that have underperformed and into more expensive stocks with limited upside potential.