The ESG and SRI Channel

US Earnings Growth: Businesses that Matter

Many investors are scrutinizing US earnings growth, given that stock valuations are somewhat elevated. Companies that can maintain a successful moat around their business in a changing environment are best positioned to deliver growth and returns.

Mr Xi Reveals His Blueprint for China’s ‘New Era’

China’s latest National Party Congress wasn’t the model of transparency, but the market appreciated the overall sense of political stability and policy continuity – and the clear vote of confidence for the continued leadership of General Secretary Xi Jinping, says Raymond Chan, CIO Equity Asia Pacific for Allianz Global Investors.

Finding Opportunities in the ESG Space

In the past, investing according to your values, or anything other than financial fundamentals, was seen as a potential detriment to performance. Over time, however, investors have learned that non-financial metrics can help them better understand the risks a company faces, and may even impact that company’s stock price.

Quarterly Letter

Value investing is under attack. The US equity market is at its most expensive level in history and has spent most of the past six years in the top quintile of expensive. In addition, value equities have underperformed the broad market and more widely growth equities for over ten years.

 

Q4 Outlook: A Look at Key Issues, Sectors as 2018 Approaches

The stock market continued to hit new highs through the third quarter, confounding those who focused on the rapidly changing headlines in the U.S. and throughout the world.

The Rules of Growth: Organisms, Cities and Companies

What do living organisms, cities and businesses have in common? They all have organic characteristics: they’re born, grow, sometimes shrink and usually die. They all require energy to maintain and grow, and they all must deal with the sometimes undesirable byproducts of their existence.

The World Is Running out of Gold Mines—Here’s How Investors Can Play It

So few new large mines are being discovered today, mostly because companies have had to slash exploration budgets in response to lower gold prices. Earlier this year, S&P reported that total exploration budgets for companies involved in mining nonferrous metals fell for the fourth straight year in 2016. Budgets dropped to $6.9 billion, the lowest point in 11 years. Although we’ve seen an increase in spending so far this year, it still dramatically trails the 2012 heyday.

3rd Quarter Commentary

Though the seething pits of humanity at the New York Stock Exchange and Chicago Mercantile Exchange, with their traders all shouting at each other, are largely things of the past, that is still what markets basically are: a bunch of people shouting different things. A market price is the price at which the same amount of people are buying as are selling.

Emerging Markets Third-Quarter Recap: A Stellar Rally

Templeton Emerging Markets Group has a wide investment universe to cover—tens of thousands of companies in markets on nearly every continent. While we are bottom-up investors, we also take into account big-picture context. Here, I share the team’s overview of what has happened in the emerging-markets universe in the third quarter of 2017, including some key events, milestones and data points to offer some perspective.

Are ICOs Replacing IPOs?

My keynote address on Tuesday focused on quant investing in gold mining and the booming initial coin offering (ICO) market. I’m thrilled to share with you that the presentation was voted the best, for which I was awarded an ounce of gold. I want to thank the London Bullion Market Association, its members and conference attendees for this honor.

The Metamorphosis of Emerging Markets

The relative performance of emerging markets has been unremarkable over the past decade, however meaningful changes have taken place in the fundamental and financial construct of the asset class that are relevant for asset allocators. Most notably, the composition of the index has seen dramatic shifts in sector, country, and stock constituents...

5 Things to Know About Emerging Markets

Emerging markets debt and equity have many overlapping traits, but also differ in their exposure to countries and risks. The MSCI Emerging Markets Index contains 27 countries, with the five largest accounting for 70% of market value. Three countries in Asia - China, South Korea and Taiwan - comprise more than 50% of the index.

Car Manufacturers Are Electrifying Copper, “The Metal of the Future”

As many of you know, copper is often seen as an indicator of economic health, historically falling when overall manufacturing and construction is in contraction mode, rising in times of expansion. That appears to be the case today. Currently trading above $3 a pound, “Doctor Copper” is up close to 24 percent year-to-date and far outperforming its five-year average from 2012 to 2016.

The Science and Art of Multi-Asset Investing

Generating consistent returns under uncertain conditions is a challenge. Can multi-asset strategies make the job a little easier? We think so. But a lot depends on how they’re designed.

Hoisington Quarterly Review and Outlook, Third Quarter 2017

The worst economic recovery of the post-war period will continue to be restrained by a consumer sector burdened by paltry income growth, a low and falling saving rate, and an increasingly restrictive Federal Reserve policy. Additionally, with the extremely high level of U.S. government debt and deteriorating fiscal situation, the economy is unlikely to benefit from any debt-financed tax changes. Finally, from a longer-term perspective, the recent natural disasters are an additional constraint on economic growth.