A number of business-friendly reforms against an improving economic backdrop have likely contributed to Brazilian equities surpassing their Emerging Markets (EM) peers this year. With additional beneficial measures planned and pervasive skepticism about their chances of passage, we think more positive surprise may await and remain optimistic of Brazil’s prospects. In our view, Brazil’s experience underscores how economic reforms can lift equities, particularly in the many EM countries where positive reform is badly needed.
In our view, the Big Growth and Small Value performance cycle is linked to the business cycle and yield curve. We also believe the flattening yield curve and cyclical shift from investment–driven growth to consumption-driven growth points to Big Growth outperformance moving forward.
Highlights macro trends and the popularity of various ESG investing approach.
China’s economic miracle—its 30-plus year path of rapid advance and development to become the world’s second-largest economy—is often seen as uniquely Chinese, an isolated case of policymakers luckily pulling all the right levers to conjure growth. To us, though, a longer perspective shows China’s miracle bears broad similarities to Taiwan’s, Korea’s and Japan’s (with some admittedly Chinese characteristics). We believe a look at how China’s “miracle” resembles those before it—and at some key differences—can add valuable perspective on its present situation and the likely path forward.
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 £91 billion* in assets for over 69,000 private clients and 175 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 31/12/2019. Includes assets under management of Fisher Investments, its subsidiaries and affiliates.)