Guess Which is Not the Worst Performing Area of the Global Equity Market this Year?


One major trend availing itself in the global equity markets may be surprising: the stark out-performance of emerging markets. We’ve started to write a bit here and there about the relative performance differentials availing themselves in what has undoubtedly been a turbulent year. The reason we’ve spent time on this subject is because often at important […]

EM has Out-performed DM in the Short-term (a good sign), but is this Just a Reflection of a Weaker USD?


Over the weekend a long-time client asked an excellent question related to our recent blog post entitled, “Is a Bright Spot Emerging in the Global Equity Markets?”, in which we tediously documented the relative out-performance trends among the vast majority of emerging market countries. The client correctly highlighted another notable divergence from trend being the US […]

Quality is Ruling Pretty Much All Areas of this Market


As markets narrow amid stress in the commodities and banking areas (see our recent post on the narrowness of markets) we wanted to point out that there has been one saving grace for equity investors, which is quality companies. In all but two sectors (energy and materials), owning the highest quality companies has significantly helped performance. […]

Just How Narrow is This Market? Two Visualizations to Illustrate the Importance of Good Active Management


Most stocks are down since the global equity markets peaked on 5/21/2015 (this goes without saying) and most stocks are down a lot. This puts a premium on solid active management and stock picking. But the sheer numbers are striking. Of the 2885 companies in our GKCI All Country World Index, fully 2383 (or 83%) of them […]

On Why Emerging Market Funds Are Ill Equipped to Capitalize on a Rebalancing China

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We’ve hashed out the arguments for a persistently slowing China in this blog many times, so we won’t go there again today. Instead, we want to focus on a different aspect of the slowing China reality: the fact that most investment products that focus on emerging markets are overweight exactly the wrong economic sectors. In […]

White paper: Smart Beta 2.0, A Disruptive Innovation

There is a new battlefront in the money management business. New smart beta ETFs are entering the market to compete against actively managed mutual funds. These funds will be formidable competition, offering the possibility of superior performance — traditionally the province only of actively managed funds — lower expense ratios and other advantages. As with every […]