Consensus still holds that the Chinese economy will grow about 7.5% this year and next, but risks to economic activity are the downside as China’s new leadership seeks to restructure the economy. Investors can expect increased policy-induced (from financial sector reform) volatility in Chinese equities. In addition, prospective strains in the Chinese financial system risk spilling over into the real economy.
Japan as Number One: Lessons for America, scholar Ezra Vogel’s bestselling book that appeared in 1979, may seem anachronistic now, but global investors should not dismiss the possibility that “Abenomics” will lead to a gradual restructuring of the Japanese economy and a transformation as profound as the Reagan and Thatcher revolutions. Such a development could lead to a sustained rally in Japanese equities, but it is too soon to know whether Abenomics will deliver on its promise.
As a group, emerging market equities have experienced considerable volatility, though the emerging market asset class has provided spectacular returns for investors since the early ’90s. Nevertheless, a more detailed look reveals that returns have been uneven: the ’90s have seen major shocks (the Asian crisis) and defaults (Mexico, Russia), whereas the first decade of this century saw significant outperformance compared to developed markets.
The global economy is being run very poorly. Things are so bad that portfolio managers will need to build bomb shelters to keep assets safe.
Despite some heightened volatility in the fourth quarter of 2012, Canadian pension plans were buoyed by global equity and real estate returns, according to data from RBC Investor Services. Within the $410-billion RBC Investor & Treasury Services All Plan Universe—the industry’s most comprehensive universe of Canadian pension plans—Canadian DB plans listed in RBC’s All Plan […]
Where were the best and worst places to put your money this year?
Despite market turbulence and growing inflation, a survey of Portfolio Management Association of Canada (PMAC) members finds that professional investors have “bedrock confidence” in the financial future of equities.
Investor confidence is continuing its downward trend, according to the State Street Investor Confidence index reading for September.
The Canada Pension Plan Investment Board (CPPIB) has increased its equity allocation to Goodman China Logistics Holding (GCLH) by an additional US$500 million, with US$400 million contributed by CPPIB and US$100 million by Goodman.
Originally from our sister publication, Advisor.ca Every time China and India are pitted against each other, experts tend to lean towards China as an investment destination of choice. It may be so that, all things considered, China’s growth story somehow seems just a bit more credible than that of India. The one man that stands […]