EM Fund Stock Picks & Country Commentaries (October 20, 2024)
Finding quality Asian stocks, justification for Indian valuations, Sri Lanka trip report, new scramble for Africa, investor home bias, index exclusion (Bahamas case), investment trust conferences, etc
As of mid October, a number of new Q3 fund updates have dropped plus there have been a couple of investment trust conferences with their talks now available (also see our continuously updates post):
Verdad has this two part piece:
🔬🌐 The Great Rotation - A potential unwinding of hyper-concentration in the US may favor balanced global portfolios.
🔬🌐 The Great Rotation (Part 2) - The United States’ outsize weighting in commercial indices appears unjustified by its share of global GDP.
🔬🌐 Robecco has this piece: Gold is back as an asset class - Its allure has lasted for centuries and shows no sign of losing its appeal. The recent spike in the price of gold to all-time highs suggests it should once again be treated as a genuine asset class and not an emotional fad, says multi-asset investor Arnout van Rijn.
🔬🌐 Amundi has this detailed update: Macroeconomics, Geopolitics, and Strategy - October 2024 - Summary: Macroeconomic focus - If only LatAm’s fiscal policy could mimic its prudent monetary policy stance; Macroeconomic snapshot; Central banks watch; Key dates; Geopolitics; Policy; Main and alternative scenarios; Equities in charts; Bonds in chart; Amundi Investment Institute Models; Commodities Currencies
🔬🌐 Baillie Gifford has this interesting piece which also cites a Credit Suisse study (Credit Suisse Global Investment Returns Yearbook 2023 Summary Edition - Pdf file): Do US elections matter for stock returns?
Past data suggests there is not a strong link between the S&P 500’s performance and the politician picked to helm the US economy.
Technological advances and company launches appear to have had more long-term influence on the index than election issues of the day.
We focus on seeking out exceptional companies, including Novo Nordisk A/S (NYSE: NVO) and Stella-Jones Inc (TSE: SJ / FRA: 97S / OTCMKTS: STLJF), that can deliver outperformance.
🔬🌐 UBS has this piece which is an update to the Credit Suisse yearbook: Global Investment Returns Yearbook 2024
The latest Global Investment Returns Yearbook projects future generations will see lower returns than those enjoyed by previous generations, although predicted to be 200bps higher than what could have been expected two years ago.
The UBS Global Investment Returns Yearbook covers 35 markets and five composite indexes, i.e. the world, the world ex-US, Europe, developed markets and emerging markets. Twenty-three of the countries and all five composite indexes start in 1900. The other 12 markets start later than 1900, but have long histories ranging from 48 to 73 years. This chapter describes each of the markets and composite indexes, providing charts and tables summarizing the historical performance of stocks, bonds, bills, inflation and currencies.
🔬🌐 Janus Henderson Investors has this piece: In the sweet spot for global small caps? Investor questions answered - Global small caps offer investors long-term returns potential. Here we summarise the views of our small cap experts in response to key questions from investors at a recent panel session in London.