Once upon a time, the mere mention of emerging markets as a cores asset holding would have raised eye brows amongst investors.
Escape velocity is the speed an object must reach to break free of a gravitational field without further propulsion. We use it here as a working definition of what we are looking for in this cycle: companies whose own cash flow will eventually generate enough return to sustain their growth without continued reliance on external financing.
A new wave of mega-IPOs could reshape public markets, with SpaceX, OpenAI, and Anthropic among the highest-valued private companies ever created. Their eventual listings will mark a new chapter for passive investing, as unprecedented amounts of market value enter major indexes and become incorporated into index-based investment strategies.
The U.S. and Israel launched coordinated strikes on Iran over the weekend, drawing retaliatory strikes across the Gulf and Middle East and closing the Strait of Hormuz. Markets have so far responded with more discipline than alarm — but the variables that matter most are still unresolved.
In early April global equity markets experienced a ‘growth scare’ brought on by tariffs. This spiked uncertainty about consumer spending, corporate investment risk, employment, and the impact of tariffs on corporate margins and earnings. Global markets sold off sharply. The swift and significant rebound since this early April swoon has been driven by an equally nuanced set of factors.
President Trump’s sweeping tariff policy has injected fresh uncertainty into global markets, amplifying concerns around trade dynamics, economic stability, and geopolitical strategy. In this turbulent environment, investors are challenged to disentangle what is certain, what remains uncertain, and what is truly significant.
Rising inflation fears, shifting monetary policies, and geopolitical instability are unsettling markets and investor confidence. This research note examines the challenges, outlines a measured approach to managing risks, and reflects on taking advantage of the opportunities being created.
August 2024 started with a swift drawdown in markets. As with many such corrections, a major contributor was leverage.
All said, a return to a more normal economic cycle away from the likelihood of stagflation, alongside a wave of innovation and technological advance, offers a good backdrop in the medium to long term.
A disquieting apprehension about inflation has drifted into the public consciousness. The headlines say that inflation is better. Why don’t we feel that way?
October's earnings season and the market divergence that accompanied it expose a growing tension: technology giants are spending billions on AI that could disrupt some of their established revenue streams, while other companies may already be benefiting from the capabilities those investments create.