Flows into European equities resume with more gains expected: Goldman Sachs strategists highlighted recent uptick in flows into European equities, marking a long-awaited trend reversal after nearly two years of constant selling since Russia's invasion of Ukraine. Team noted while flows typically correlate with the cycle and expectations, this time the inflows have lagged both in timing and size compared to the improvement in survey data. Flows into cyclicals have also increased. This observation fits with an economic inflection in Europe driving the inflows, along with the broadening rally seen in the US, Goldman strategists said. They argued that Europe has been the least-favored region for long-only flows in recent years, with cumulative net inflows close to zero since 2020. Domestic investors, who had been withdrawing from European equities, have returned, and international investors are also increasing their exposure. Said European households, significant savers in recent years, have favored cash, deposits, and bonds over equities. Team now believes that when rate cuts materialize, coupled with the current modest cyclical pickup, there will be "further interest in equities" among households.
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Proud to share my latest market review, where I delve into the recent turbulence in the equities and bonds markets. April was a challenging month with persistent US inflation dampening hopes for Federal Reserve rate cuts. Additionally, I offer an in-depth analysis of China’s equity landscape, the country with the largest weighting in the MSCI Emerging Market indexes. Check out the full article for more insights! #MarketReview #ChinaMarket #Inflation
Having survived multiple market crises in our investment journey with our clients for over two decades, we know what works and what will not work. In our latest market review, Choon Siong L., our Research Analyst, shares how equities and bonds plummeted in April as reports of persistent US inflation dampened expectations of Federal Reserve rate cuts. He also does a deep dive into China’s equity landscape – the largest single-country exposure in the MSCI Emerging Market indexes. To ensure our clients have a positive investment experience, Providend is committed to delivering reliable returns, prioritising this over maximising returns and taking unnecessary risks that do not meet their needs. Make an enquiry with us today: https://lnkd.in/g-CRhQgw
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We recently upgraded European equities to Market Weight from Underweight in March, and we're happy to report that the economy is showing signs of troughing. Despite misconceptions about European equities, we believe they present attractive opportunities. Check out our latest analysis to learn more about the evolution of the European equity market since the global financial crisis. Let's continue the conversation with fellow investors. #EuropeanEquities #InvestmentOpportunities #MarketUpdates #caymanislands
The metamorphosis of European equities - RBC Wealth Management
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The expected rate cuts in the US will continue to benefit Hong Kong equities, as a large part of the territory’s sectors are interest-rate sensitive, including property, REITs, telecom, and utilities. However, investor sentiment toward Chinese equities remains lukewarm, given the country’s weak economic outlook. Southeast Asia will also benefit from the Fed rate cuts, and the region’s good earnings momentum has supported its equity performance. However, the rally’s momentum is diminishing amid the increasing volatility in the US market and its softer economic data. Meanwhile, investors have dialed back on their optimistic outlook on AI themes. We expect markets to continue to adjust their expectations in this space. Access our latest multi-asset views here: https://bit.ly/4e5c5xG Follow us on LinkedIn and get the latest news and investment insights. ----------------------------------------------------------------------- 💡 Know more about Value Partners: bit.ly/3AIa8FX 🔎 Facebook: bit.ly/3mjfFLB 🔎 YouTube: bit.ly/valuepartners4236 🔎 Subscribe to our e-newsletter: bit.ly/3AGDDI6 #valuepartners #mutualfunds #investments #assetmanagement #wealthmanagement - Investment involves risk. The above information is for reference only. It does not constitute an offer or an invitation to subscribe any securities, or a recommendation in relation to any securities.
Value Partners | Multi Asset Perspective – Sep 2024
valuepartners-group.com
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Manufacturing is fundamental to all human endeavours in the real, physical world. Everything else happening in our head is what Yuval Harani calls "story telling" - valuation models, narratives etc. Manufacturing is forever so how companies eating the lunch of their competitors in EV, phone, solar panel/windmills, drones, bridges, high speed train, nuclear plants, ships, etc.etc. become "uninvestable"?
Piling Up - Oaktree Capital On China Equities, March 2024 "The current market narrative about the “uninvestability” of China reminds us of a recent comment from our co-chairman Howard Marks: If you have two piles of assets – one with things that everyone loves, that are priced well and performing well, and the other with assets that everyone dislikes, that have poor price performance and are believed to be troubled – you have to ask yourself where will you find the best opportunities? The answer is clearly in the latter. Chinese equities may be at the top of the “disliked and troubled” pile today. They are currently trading at a record-low 8.2x forward estimated earnings, on average and the gap between U.S. and Chinese technology stocks is the widest it has been in many years. Moreover, sentiment regarding investment in China is as bad as we’ve ever seen it, with global positioning surveys showing China to be a large consensus underweight. Counterintuitively, many investors who favored Chinese equities a few years ago when large Chinese companies were often being very aggressive in their use of capital, now consider the same equities to be too risky, even though the companies involved have become much more conservative and the equities themselves have become much less expensive. Importantly, we think many high-quality Chinese companies are being punished not because of concerns about their fundamentals, but because of broad macro concerns about China. In fact, the fundamentals of many companies are actually improving. For example, net cash positions at the top 15 Chinese companies in the MSCI Emerging Markets Index have risen from negative $19 billion in 2019 to $113 billion in 2023. Far from worsening the investment outlook in China, we believe that this bear market has dramatically improved the long-term investment prospects for those capable of identifying value in a complex market. To paraphrase another quote from Howard, we prefer to buy things when they’re on sale, not after they’ve been marked up." Photo: Huawei laptop -- I am as thick as a coin, while it could have said I am thinner than a coin.
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Piling Up - Oaktree Capital On China Equities, March 2024 "The current market narrative about the “uninvestability” of China reminds us of a recent comment from our co-chairman Howard Marks: If you have two piles of assets – one with things that everyone loves, that are priced well and performing well, and the other with assets that everyone dislikes, that have poor price performance and are believed to be troubled – you have to ask yourself where will you find the best opportunities? The answer is clearly in the latter. Chinese equities may be at the top of the “disliked and troubled” pile today. They are currently trading at a record-low 8.2x forward estimated earnings, on average and the gap between U.S. and Chinese technology stocks is the widest it has been in many years. Moreover, sentiment regarding investment in China is as bad as we’ve ever seen it, with global positioning surveys showing China to be a large consensus underweight. Counterintuitively, many investors who favored Chinese equities a few years ago when large Chinese companies were often being very aggressive in their use of capital, now consider the same equities to be too risky, even though the companies involved have become much more conservative and the equities themselves have become much less expensive. Importantly, we think many high-quality Chinese companies are being punished not because of concerns about their fundamentals, but because of broad macro concerns about China. In fact, the fundamentals of many companies are actually improving. For example, net cash positions at the top 15 Chinese companies in the MSCI Emerging Markets Index have risen from negative $19 billion in 2019 to $113 billion in 2023. Far from worsening the investment outlook in China, we believe that this bear market has dramatically improved the long-term investment prospects for those capable of identifying value in a complex market. To paraphrase another quote from Howard, we prefer to buy things when they’re on sale, not after they’ve been marked up." Photo: Huawei laptop -- I am as thick as a coin, while it could have said I am thinner than a coin.
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Head of Nordics, Janus Henderson Investors// Institutional & Wholesale channels// Active fund Management // Fund Distribution // Pension Funds // Family Offices // Foundations // Insurance Companies // Private Banks
Emerging markets (EM) investors must simultaneously wear two hats: that of a bottom-up equities analyst seeking to identify the innovative private-sector companies that will likely drive these regions' future economic growth, and that of a keen observer of a country's macro policy, as this realm considerably affects the business environment and, thus, investment returns #CapitalAtRisk #ForProfessionalsOnly #MarketingCommunication
Policy matters: The importance of sound macroeconomic management in EM investments
janushenderson.com
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State Street: APAC Investors to Add Private Markets Exposure: Despite growing market challenges, Asia Pacific investors remain optimistic about increasing exposure to private markets in the coming years, according to a State Street Survey. #StateStreet #privatemarkets
State Street: APAC Investors to Add Private Markets Exposure
finews.asia
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European Equity Futures Rise After Wall Street Rally European equity futures are showing gains, reflecting optimism following another record-breaking rally on Wall Street. Several factors contribute to this positive market sentiment : Wall Street Rally 1. Tech Sector Surge : . Major U.S. indices, particularly the S&P 500 and NASDAQ, have been buoyed by strong performances from tech giants. Companies such as Apple, Microsoft, and Nvidia have posted significant gains, driven by robust earnings and positive outlook on future growth. 2. Economic Data: . Positive economic indicators from the U.S. including better-than-expected employment numbers and consumer confidence levels, have bolstered investor sentiment. These indicators suggest a resilient economy that continues to grow despite various challenges. 3. Federal Reserve’s Stance: . The Federal Reserve has maintained a cautious approach to interest rate hikes, providing assurances that monetary policy will remain supportive of economic growth. This has alleviated concerns about potential tightening that could slow down economic momentum. European Market Response 1. Investor Optimism: . European investors are taking cues from the U.S. market’s performance, leading to a rise in equity futures. The positive sentiment is expected to carry over into European trading sessions, boosting market activity. 2. Sectors Performances: . Key sectors in Europe, including technology, manufacturing, and consumer goods, are anticipated to benefit from the upbeat market sentiment. Companies in these sectors are likely to see increased investor interest and higher trading volumes. 3. Economic Recovery: . Europe’s ongoing economic recovery measures, continues to attract investor confidence. The easing of COVID-19 restrictions and the rollout of vaccination programs have further contributed to economic stabilization and growth. Key Points to Watch 1. Corporate Earnings: . Investors will be closely watching corporate earnings reports from major European companies. Positive earnings surprises could further boost market sentiment and lead to continued gains in equity futures. 2. Economic Indicators: . Upcoming economic data releases, including GDP growth figures and inflation rates, will play a crucial role in shaping markets expectations. Strong economic data could reinforce the current positive trend. 3. Geopolitical Developments: . Geopolitical events, such as trade negotiations and political stability in key European countries, will also impact market dynamics.
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Natixis IM Survey Says Markets Are Too Optimistic: Markets are currently too optimistic, according to a survey by Natixis Investment Managers citing inflation and geopolitical risks as potential triggers to end the market rally. #NatixisInvestmentManagers #survey
Natixis IM Survey Says Markets Are Too Optimistic
finews.asia
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Sharing his latest outlook and analysis with us, Charles Walsh, manager of Mirabaud Group – Equities Global Emerging Markets, explains in the following update why he’s in a positive frame of mind, seeing the recent Fed cut as the start of a new rate-cutting cycle which should support EM equities going forwards. #ReemergingMarkets
Re-emerging markets: Mirabaud’s Charles Walsh reflects on how EM has reclaimed its dominance in 2024 and why he’s seeing further upside
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