The Emerging Markets Channel

Second Quarter Hedge-Fund Strategy Outlook: K2 Advisors

In their second-quarter (Q2) 2018 outlook, K2 Advisors’ Research and Portfolio Construction teams share their views on why investors should not fear the return of market volatility—and why it may unlock opportunities for active managers. We believe offering these insights will help investors better understand the rationale for owning retail mutual funds that invest in hedge strategies.

America’s Weak Case Against China

The US Trade Representative appears to have made an ironclad case against China in the so-called Section 301 report issued on March 22. But the report – now widely viewed as evidence justifying the Trump administration's recent tariffs and other punitive measures against China – is wide of the mark in several key areas.

April 2018 Economic Outlook

Conditions we are seeing today are more normal than recent years, when investors grew accustomed to record low interest rates, a near-absence of inflation and the subdued volatility. We expect coordinated global economic expansion will continue through 2018, although improvements in some economic fundamentals may have peaked.

Yes. It's a Bubble. So What?

With sky-high valuations in the US stock market, and what we believe is a tech bubble that has dangerous implications for other areas of the market, we suggest four actions investors can take now to avoid the inevitable bursting of the bubble, and which will likely benefit their portfolios’ long-term performance potential.

Weekly Gasoline Price Update: Regular and Premium Up a Nickel

It's time again for our weekly gasoline update based on data from the Energy Information Administration (EIA). The price of Regular and Premium were up a nickel each from last week. According to GasBuddy.com, California has the highest average price for Regular at $3.55 and San Francisco, CA is the most expensive city, averaging $3.68. Oklahoma has the cheapest at $2.40. The WTIC end of day spot price closed at 66.22, a 4.4% increase from this time last week.

World Markets Update

Three of eight indexes on our world watch list have posted gains through Monday, April 23, 2018. The top performer this year is France's CAC 40 with a gain of 2.37%. In second is India's BSE SENSEX with a gain of 1.89%. In third is Hong Kong's Hang Seng with a gain of 1.12%. Coming in last is Shanghai's SSE with a loss of 7.23%.

 

Volatility Is Back—And That’s a Good Thing for Active Management

It’s been a rocky start to 2018 for equity markets globally—volatility has returned with a bang and February saw the first 10% market correction in a while. So, why are active managers smiling?

China Plays It Cool

This year, China is in the headlines because President Trump wants better trade terms. That’s important, but it’s only one piece of a much larger Chinese story that has been unfolding slowly for decades. Periodically, I check in on the latest developments. Today, we’ll see where we are, with the help of my trusted sources.

Commodities Are Flashing a Once-in-a-Generation Buy Signal

The investment case for commodities, gold and energy is more compelling than at any other time in recent memory.

S&P 500 Snapshot: Up 0.5% WoW

The S&P 500 rose and fell this week, ending Friday up 0.5% from the same time last week. The index was down -0.85% from Thursday and is down 0.95% YTD.

Volatility Awakens: A Market Review

The beginning of the first quarter was serene and pleasurable, as equity markets levitated on the back of increasing earnings expectations and solid world economic underpinnings. But the market euphoria didn’t last long.

ECRI Weekly Leading Index Update

This morning's release of the publicly available data from ECRI puts its Weekly Leading Index (WLI) at 148.9, up 1.1 from the previous week. Year-over-year the four-week moving average of the indicator is now at 2.71%, up from 2.70% last week. The WLI Growth indicator is now at 3.2, down from the previous week.

China’s Growth Rebalancing Provides Opportunities for Bond Investors

After a decade of relying on investment and exports for growth, China’s effort to rebalance its economy toward consumer-led growth is well underway and should continue to build steam in 2018.

Global Credit Economic Summary & Outlook

Consumer spending and business fixed investment remained strong, pointing to continued domestic economic growth. Notably, business fixed investment growth, represented by private domestic investment, accelerated to 5.4% year-over-year growth in the fourth quarter of 2017, from a low of 0.71% in the third quarter of 2016.

At Cycle Turn, Fed Can Follow Two Possible Paths

Rieder and Brownback discuss how cyclical turning points result in market friction, even with solid growth, presenting the Fed with two potential paths.