Should all emerging market (EM) exposures be painted with the same brush? If not, how do investors separate good EM exposure from bad in the current environment? Gaurav Sinha explains.
Financial markets have been jittery for some time now because of concerns that trade tensions could lead to a full-fledged trade war. This analysis examines large trading partners of the U.S. and identifies which countries are the smallest and biggest contributors to the trade deficit of the U.S.
The world depends on greenbacks, which fuel trade everywhere from New York to New Delhi and from London to Macau. Which is why when the U.S. Federal Reserve changes course, it’s an event investors cannot ignore. Gaurav Sinha analyzes the top five developed and developing economies and their growth profiles.
Barring unforeseen circumstances, later this January marks the two-year anniversary of the start of the current emerging markets (EM) bull market. While EM’s current valuation paints a picture of fair value, we think there’s a more important story taking place beneath the surface that isn’t receiving enough recognition.
Whether you are looking for opportunities in the marketplace where momentum is running (China tech, emerging markets, India, and the European domestic economy) or looking for opportunities where markets have lagged other parts of the world (the Middle East, the United Kingdom, Japanese financials, and U.S. small caps), this look at top and bottom performers might give you a year-end shopping list from which to choose.
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.
India’s parliament is currently about to close its winter session. Agenda items for the session included key bills such as the Goods and Services Tax (GST) Bill, which could simplify taxes and increase mobility of goods and services across the country; the introduction of a bankruptcy code to strengthen the banking system; and a few other key legislative items.
On October 23, my colleague Gaurav Sinha and I had the pleasure of speaking with India’s Honorable Minister of State for Finance, Jayant Sinha. India’s economy is going through a major transition, and there is no one better qualified to give us an inside account than Mr. Sinha, who is at the helm of economic policy making for the government of India.
Each year, WisdomTree screens the investable Indian equity market for the rebalance of the WisdomTree India Earnings Index (WTIND). This annual rebalance discipline anchors the Index to fundamentals and helps manage valuation risk.
WisdomTree believes that weighting by market capitalization, which does not weight, consider or rebalance back to any measure of economic importance of the underlying constituents, may not be the best approach to indexing.
At WisdomTree, we believe in the long-term potential of India’s equity markets, especially given the tag team of prime minister Narendra Modi and Raghuram Rajan, governor of the Reserve Bank of India. These two have brought and can continue to bring investor-friendly pro-growth reforms and credible monetary policy, respectively.