When value equities led briefly in Q4 2020 driven by positive COVID-19 vaccine news, some investors presumed it was the start of a longer-lasting leadership rotation that would benefit banks, one of the largest value industries. While that rally has since faded, some suspect it previews what is to come once economies begin to reopen.
This paper seeks to explore a key ESG related theme, the future of US Oil Demand and Rise of Electric Vehicles, for potential opportunities & associated risks.
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.