Jesper Koll / Currency Hedged Equity, Earnings, Equity, Japan on 19 Oct 2016

Japan Earnings—Reality Check

Japanese equities face a final hurdle that must be overcome for a positive breakout from the relatively tight (and lackluster) trading range overserved throughout the past six months : Consensus earnings forecasts are bound to be cut significantly in the upcoming results season. In our view, the likely adjustment downward in analyst consensus numbers should be a positive trigger.  

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Bradley Krom / Fixed Income, Currency & Alternative, Japan on 23 Sep 2016

Investors Shift Focus to Shape of Global Yield Curves

While the shape of global yield curves is generally relegated to the purview of fixed income strategists and economists, many investors are now starting to take note of not only the level of interest rates but also their relative slope. 

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Jesper Koll / Japan, Market News on 21 Sep 2016

Yes, the Bank of Japan Wants a Weaker Yen and Stronger Banks

From stronger banks to a steeper yield curve and a possible overshoot in inflation−our Japan CEO, Jesper Koll, summarizes the outcome of BOJ meeting yesterday.

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Jeremy Schwartz / Dividends, Interest Rate Strategies, Japan on 21 Sep 2016

Utilities vs. Financials: A Rising Rates Story

One of biggest drivers of performance in 2016 has been declining interest rates and all the ramifications across markets and sectors geared both positively and negatively to falling interest rates. Sectors that typically benefit from falling rates tend to be more defensive, higher-dividend-yield sectors often referred to as “bond-like” sectors because of their sensitivity to interest rates. Utilities fit this bill well and have been one of the strongest performers in early 2016. That is, until July 8. 

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Jeremy Schwartz / Equity, Japan on 20 Sep 2016

The Other Side of the Low-Volatility Trade

Investors who have been embracing the low-volatility/high-dividend/utilities sector trade should be aware of how much “bond duration” or interest rate risk they may have added to their portfolios. If interest rates continue to rise, these three areas of the market could face a tough period of performance and compound poor returns from bond allocations, in our view.

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