Italian constitutional referendum and European banks weigh on DM stock market but risk premium is back at very high levels for Eurozone equities
Mid-cap stocks exposed to structural change, ‘picks and shovels stocks’ and undervalued frontier market businesses are three areas of investment that would likely slip below the radar of the more passive and large-cap focused emerging market investor. For active, fundamentals-driven investors like us, they represent a great opportunity.
Impacts of regulation & quantitative easing: How do you assess the liquidity situation of major bond markets? Which parts of the global fixed-income universe are currently depicting the strongest declines in liquidity and to what extent could those shortages potentially pose a threat to other market segments?
Faced with negative interest rates on deposits and government bonds, as well as very low yields on credit instruments, investors are pushing further into risk assets. Within equity markets ‘bond proxies’ are trading at elevated levels of valuations as investors chase ‘safe’ earnings and dividends.