If bond investors have learned anything this year, it is that the “winds of change” can blow in dramatically different directions regarding monetary policy. Kevin Flanagan discusses how market sentiment has shifted from where we were only four months ago.
With the next Brexit vote just around the corner, our Head of Research in Europe, Christopher Gannatti, provides some context on what Brexit may mean for European equity investors.
You wouldn’t know it from the gut-wrenching fourth-quarter decline and 2019’s stock market snapback, but the euro has been downright sleepy. What does it mean for advisors? Be careful.
It’s easy to make the case for investing in the U.S. versus Europe. But investors may not realize that each of the five major factor-focused indexes of Europe have been positive in January of 2019 after quite a rough year. European small caps have delivered strong performance in the long term and currently offer a large discount over U.S. equities. Christopher Gannatti discusses the opportunity in European small caps.
Lately it has seemed easy to find reasons to avoid investing in European assets. Christopher Gannatti highlights three reasons why we believe the risks can create valuation opportunities in Europe.
Jeremy J Siegel
Senior Investment Strategy Advisor
CEO of WisdomTree
Jeremy Schwartz, CFA
Executive Vice President, Global Head of Research
Christopher Gannatti, CFA
Head of Research, Europe
Christopher Gannatti began at WisdomTree as a Research Analyst in December 2010, working directly with Jeremy Schwartz, CFA®, Director of Research. In January of 2014, he was promoted to Associate Director of Research where he was responsible to lead different groups of analysts and strategists within the broader Research team at WisdomTree. In February of 2018, Christopher was promoted to Head of Research, Europe, where he will be based out of WisdomTree’s London office and will be responsible for the full WisdomTree research effort within the European market, as well as supporting the UCITs platform globally. Christopher came to WisdomTree from Lord Abbett, where he worked for four and a half years as a Regional Consultant. He received his MBA in Quantitative Finance, Accounting, and Economics from NYU’s Stern School of Business in 2010, and he received his bachelor’s degree from Colgate University in Economics in 2006. Christopher is a holder of the Chartered Financial Analyst designation.
Head of Fixed Income Strategy
Tripp Zimmerman, CFA
Head of Fixed Income & Currency
Associate Director, Asset Allocation and Modern Alpha
Head of Capital Markets
Associate Director of Capital Markets
Head of Europe
Joseph Tenaglia, CFA
Associate Director, Asset Allocation
Kara Marciscano, CFA
Jianing Wu joined WisdomTree as a Research Analyst in October 2018. She is responsible for analyzing market trends and helping support WisdomTree’s research efforts. Previously, Jianing completed internships and projects at Geode Capital, Starwint Capital, and Invesco Great Wall Fund Management with a focus in quantitative research. Jianing received her M.S in Finance from the Massachusetts Institute of Technology. She graduated with honors from Boston College with degrees in Mathematics and Philosophy.
Jeff Weniger, CFA
Director, Asset Allocation
Alejandro Saltiel, CFA
Associate Director of Modern Alpha
Alejandro Saltiel joined WisdomTree as a Quantitative Research Analyst in May 2017. He is responsible for quantitative research on WisdomTree’s products and global equity markets. Prior to joining WisdomTree, Alejandro worked at HSBC Asset Management’s Mexico City office as Portfolio Manager for multi-asset mutual funds. He started his career working at a boutique hedge fund that specialized on trading options on sector-levered ETFs. Alejandro received his Master’s in Financial Engineering degree from Columbia University in 2017 and a Bachelor’s in Engineering degree from the Instituto Tecnológico Autónomo de México (ITAM) in 2010. He is a holder of the Chartered Financial Analyst designation.
Matt Wagner, CFA
Modern Alpha Analyst
Matt Wagner joined WisdomTree in May 2017 as a member of the Research team. He is responsible for research on WisdomTree’s products and communicating the firm’s views on the markets. Matt started his career at Morgan Stanley, working as an analyst in Treasury Capital Markets from 2015 to 2017 where he focused on unsecured funding planning, execution and risk management. Matt graduated from Boston College in 2015 with a B.A. in International Studies with a concentration in Economics. Matt is a holder of the Chartered Financial Analyst designation.
Jeremy Schwartz recently spoke with Jawad Mian, editor of “ Stray Reflections,” and Richard Clarida, global strategic advisor to PIMCO and economics professor at Columbia, regarding their thoughts on policy action by the Federal Reserve (Fed), the Bank of Japan (BOJ) and the European Central Bank (ECB), as well as global implications for investing. Below I outline the key takeaways.
WisdomTree recently introduced the new WisdomTree Europe Local Recovery Index, which is designed to provide exposure to the more local side of the European economy by excluding companies whose business is dominated overseas as well as the more defensive sectors of the market.
The euro area and the United States are comparable in numerous ways, including population and relative economic size. Since the financial crisis, they have also shared a common goal of escaping from the jaws of a balance sheet recession, as deleveraging has posed a headwind to economic growth on both continents.
Earlier, we discussed how positive trends in the European economy showing domestic growth are leading the eurozone, while global trade has been one of the weak points. What could be a good way to position toward this local economic recovery?