Included in our Equity Outlook, you will find our current economic, political and sentiment market drivers for selected regions in global developed and emerging markets.
As the current market environment continues to support portfolio positioning towards Large Cap, Growth-oriented equities, elevated valuations have suggested a possible role reversal. We explore how this current market environment is connected to the tech bubble, and why we are not concerned about any short-term reversals.
Emerging Markets (EM) Small Cap is a unique category within the EM space, offering additional diversification and direct exposure to EM consumers, and it is often overlooked by institutional investors.
As we get closer to the 2020 US Presidential Election, this paper provides a primer on how equity markets and politics interact.
Consumer preferences are constantly evolving and industries have to work to stay relevant and adapt to such changes. The rise of alternative, primarily plant-based, meat poses unique opportunities as well as challenges for new and old players in the Food Products industry. Many of these opportunities and challenges can be tied back to larger ESG trends and issues facing society.
This paper highlights Fisher Investments’ political analysis of the upcoming US presidential election and the potential impact the election may have on equity markets.
Energy efficiency and renewable use may not be the largest performance drivers, but for ESG investors, cloud service providers serve a clear function in addressing long term climate goals. Fisher Investments’ proprietary top-down materiality system helps make these insights visible. We can then use this to craft responsible investment themes with clarity on how trends impact a given market segment.
As the global search for COVID-19 therapeutics and an eventual vaccine intensifies, we highlight our views as to why the biotechnology industry has significantly outperformed the broader Health Care Sector.
The claim of Tech valuations nearing the late 1990’s Tech bubble levels appears flawed. Growth has led Value for years, and the economic impact of COVID-19 have increased the spread between Growth and Value, leading some analysts to speculate whether a reversal is “due”.
The environment resulting from COVID-19 is unprecedented in many ways. While historical analysis remains useful in this period, we have reorganised some of our research efforts into six different categories to assess development in this unique period.
In our view, category leadership throughout the downturn, and investment opportunities within the ensuing recovery will be predicated on how long the widespread shutdowns remain in place.
Impacts to the real economy from reductions in capex and employment were manageable from 2014-2016 and likely remain so. Additionally, banks remain modestly exposed to Energy loans, and most lending to the sector remains in the form of corporate debt.
While we do not make formal earnings growth forecasts, we believe the current impact on earnings growth due to the coronavirus outbreak will likely be relatively short-lived.
As of 25 March 2020, our global equity sector views have remained largely unchanged. However, we are assessing various possibilities in analyzing how this recent downturn might take its course and have narrowed it to three likely future scenarios.
Low carbon strategies are growing in demand, demonstrating the growing opportunities that exist. For investors that are facing the possibility to divest from carbon, we highlight how to construct a carbon divestment strategy and the ways we integrate low-carbon themes into our process.
As the market cycle continues to mature, we expect the yield curve to remain relatively flat and the economy to shift from investment-driven growth to consumption driven growth. As such, capital intensive sectors will likely lag while service-oriented, consumption-driven sectors will likely lead, driving outperformance for Big Growth equities.
Fisher Investments Europe was established in London, England in 2000. Fisher Investments Europe offers the portfolio management services of its parent company, Fisher Investments, an independent money management firm in the US founded in 1979 by investment guru Ken Fisher. Today, Fisher Investments and its affiliates oversee more than £116 billion* in assets for over 68,000 private clients and 150 institutional clients globally.* Founder Ken Fisher’s “Portfolio Strategy” column for Forbes ran from 1984 through 2016, making him the longest continually running columnist in the magazine’s 90+ year history. He has also authored several New York Times bestsellers on finance and investing. (*As of 31/12/2020)