Looking back, 2015 was a tough year for emerging market (EM) equities and their currencies. A looming interest rate hike in the U.S., combined with a Chinese slowdown and falling commodities, ensured that most EM currencies faced tremendous downward pressure. However, one currency that stood out was the Indian national rupee (INR).
Last week, Professor Jeremy Siegel and I visited Tokyo and had extended conversations with Jesper Koll, CEO of WisdomTree Japan. We discussed the extraordinary monetary policy easing that the Bank of Japan (BOJ) undertook recently, Koll’s thoughts on the sectors that might benefit and general progress on Abenomics.
With the lion’s share of headlines centered on the turbulence in the equity and crude oil markets thus far in 2016, some developments in the U.S. credit arena have moved to the back burner. However, within corporate bonds, recent events in the investment-grade market appear to have flown under the radar.
One of the big stories in the exchange-traded fund (ETF) industry in 2015 was the WisdomTree Europe Hedged Equity Fund (HEDJ), which led the entire ETF industry in net inflows, taking in nearly $14 billion for the year.
Most people think about tax planning just at year-end, but anytime there are significant pullbacks in the market, we think there is an opportunity to rotate into other strategies and book a loss.