EMEA
Insights
Investment Insights by our experts and thought leaders
Navigating Japan Equities (November 2024): assessing the impact of the US elections on Japan
by , — 08 November, 2024
As with the other markets, Japanese equities reacted immediately to Donald Trump's US presidential election win. The immediate election impact is expected to fade relatively quickly, with market focus turning to the trade policies Trump may pursue upon his return to the White House.
Balancing Act: Global Multi-Asset Quarterly (Q3 2024)
by — 07 November, 2024
Volatility dominated risk markets in the early part of the July-September quarter, while perceptions of the US employment environment also had an impact. Over the quarter, we kept an overweight position on growth assets and maintained a neutral position on defensive assets.
After Trump’s win, fiscal policy and inflation risks in focus
by , — 07 November, 2024
Following Donald Trump's US presidential election win, in the near term we remain constructive on US growth and stocks, with the markets expecting corporate tax cuts and seeing a general penchant toward deregulation across industries as positive for earnings. In the longer term, we anticipate a rise in tail risks associated with fewer hurdles to fiscal expansion and higher US inflation.
Japan’s economic reflation in five charts
by , — 31 October, 2024
We illustrate Japan’s economic reflation by highlighting the following trends: households turning from savings to spending, pent-up demand meeting high wage growth, real household incoming becoming positive, a strong inbound tourism rebound and increasing willingness by firms to spend cash.
Balancing Act Monthly Insights: Global Multi-Asset (October 2024)
by — 29 October, 2024
The start of the Fed’s rate cut cycle was a boost to risk sentiment, with resilient US data and declining inflation placing the market in a goldilocks situation. Likewise, the start of a global rate cutting cycle sets up a positive environment for defensive assets.
Navigating Japan Equities (November 2024): view of lower house elections
by , — 28 October, 2024
In a move that reflected their disapproval of Japan's ruling coalition, voters deprived it of a lower house majority. While this outcome may not have a direct impact on the market, it is important to monitor the impact of political developments on economic policies in the short term.
Global Equity Quarterly (Q3 2024)
by — 25 October, 2024
The markets suggest that growth will stay at a premium in the short term. Hence, our focus on Future Quality companies, especially those capable of taking market share as the economic backdrop worsens, may prove beneficial.
After the correction: the case for value investing in Japan
by , — 24 October, 2024
When extreme market pessimism occurred in the past, there were significant corrections in undervalued stocks. While we anticipate it will take time for volatile market trends to stabilise, we believe now is a prime opportunity for bargain hunting in the Japanese market.
Harnessing Change-Monthly Insights: Asian Equity (September 2024)
by — 21 October, 2024
The market expects more rate cuts from the Fed, giving Asian central banks room to lower rates, which is very supportive for domestic growth. Meanwhile, with more China stimulus measures anticipated, we see asset allocation into Chinese equities picking up pace and lift the entire market.
Japan’s long history of undercompensating equity investors, a legacy of deflation, is coming to an end with its risk premium now achieving parity with that of the US. This historic shift is being driven by rising dividend payouts ratios, strong earnings and reasonable valuation of underlying equities.
