Small-cap value is an investment strategy that, over long periods, has delivered prolific results. But that doesn’t mean that it always outperforms. Every investment strategy can and does succumb to periods of underperformance.
Whether investors are trading on greater stability in commodity prices or a less “hawkish” Federal Reserve, or they’re simply reallocating en masse to less expensive assets, emerging markets (EM) are soaring. But with virtually all EM assets rallying, which one makes sense for the current environment?
Despite the volatility and downdraft experienced over the last nine months, we believe Japan represents one of the best opportunities among global equity markets over the coming three to five years.
Trading activity in the U.S. corporate bond market thus far in 2016 has certainly resembled a roller-coaster ride. Indeed, two distinct patterns have been on display, as early weakness has given way to a newfound trend of improvement. This volatility has highlighted the notion that credit quality will remain an active consideration for the fixed income investor.
On June 20, 2014, the price per barrel of Brent crude oil was more than $114. Since that time, we’ve seen a massive decline, to the point that the price on April 20, 2016—nearly two full years later—was hovering in the $40 to $45 range.