Mia Simpson’s Post

Narrow market breadth was not only an equities story last year — the divergence in the top and bottom performers across asset groups and geographical regions was wide in 2023. We discuss how investors may be able to use diversification to take advantage of the variation in returns.

As the Federal Reserve's timeline for potential rate adjustments remains uncertain, Nigel Green, CEO and founder of deVere Group, suggests that investors should consider exploring opportunities in emerging markets. A dovish Federal Reserve typically leads to a weaker US dollar, making emerging market assets more attractive. These markets frequently offer more attractive yields on equities and fixed-income securities compared to developed economies. Additionally, diversification is another compelling reason to consider increasing exposure to emerging markets. With their diverse economies and industries, these markets offer an effective means of achieving portfolio diversification, potentially mitigating risks associated with concentration in a single market. For more: https://hubs.li/Q02hXtVd0 #InvestmentStrategies #EmergingMarkets #Finance #deVeregroup

Our Chart of the Week considers the narrow market breadth seen in 2023, the consequent divergence in top and bottom performers within asset groups, and potential implications for investors.

Very insightful article on the intersection of Factors, Emerging Markets, and Inflation. Guido Baltussen, from Northern Trust Asset Management, discusses the application of factors to Emerging markets and the impact of Inflation. Factors occur in almost all markets and across asset classes, but investors need to be aware of the peculiarities of the relevant markets when implementing a strategy. If you're interested in discussing how to use factor investing in your portfolio and asset allocation, check out this article and reach out! #Factors #EmergingMarkets #Inflation #InvestingTips

While attractive yields remain, we discuss why asset selection and awareness of upcoming global events are crucial within emerging market debt. Read more on this here: https://ow.ly/gTNl50RjcQI #abrdnInsights #FrontierMarkets #abrdnQuaterlyPerspective

As the Federal Reserve's timeline for potential rate adjustments remains uncertain, Nigel Green, CEO and founder of deVere Group, suggests that investors should consider exploring opportunities in emerging markets. A dovish Federal Reserve typically leads to a weaker US dollar, making emerging market assets more attractive. These markets frequently offer more attractive yields on equities and fixed-income securities compared to developed economies. Additionally, diversification is another compelling reason to consider increasing exposure to emerging markets. With their diverse economies and industries, these markets offer an effective means of achieving portfolio diversification, potentially mitigating risks associated with concentration in a single market. For more: https://hubs.li/Q02hXyWf0 #InvestmentStrategies #EmergingMarkets #Finance #deVeregroup

Chart of the Week - Narrow market breadth was not only an equities story last year — the divergence in the top and bottom performers across asset groups and geographical regions was wide in 2023. For investors with a longer-term focus, maintaining broad-based exposure within asset classes is prudent to ensure exposure to assets that may take leadership over shorter periods. #charts #investing

June proves an uphill struggle for macro managers 👇 June was dominated mainly by US and European political intrigue and interest rate divergence, which suited equity managers better than macro managers. By the end of the month, the HFRI Fund Weighted Composite Index was down -0.2%. Equities largely held their own, with the HFRI Equity Hedge (Total) Index +0.3%, although looking through the various sub-sectors, it was far more of a mixed bag than we have seen recently. At the front were funds with sizeable tech exposure, while at the back were funds more weighted to energy. By the end of the month, the best-performing sub-sector was Quantitative Directional, +3.9%, followed by pure Technology, +2.6%, and at the other end of the scale, Energy/ Basic Materials, -1.9%. Event-Driven was marginally down, with the HFRI Event-Driven (Total) Index -0.1%. Multi-Strategy and Distressed were in positive territory, up +0.6% and +0.4%, respectively. But it was the Activists who again struggled to make ground, down -2.1%, taking their year-to-date number to -0.5%; Special Situations was also down -1.1%. Macro was where much of the pain was felt, with no single strategy covering itself in glory and the HFRI Macro (Total) Index was -1.7%. Commodity exposure was largely to blame and the sector's Achilles heel, with the Commodity Index -4.1%. The Systematic Index was also -1.8% and Discretionary -0.6%. In this painful environment, the best-performing sub-sector was currencies, with the Index, -0.4%. Relative Value had a solid month, with the HFRI Relative Value (Total) Index +0.4%. Within this, Fixed Income Sovereign was the best performing +0.8% and Yield Alternatives the worst -0.7%. Taken from the Alternative Investor. To read the July edition in full when it is released https://lnkd.in/dvhKfG9D

ETF Perspectives: Q2 Markets Moved Higher, but Inflationary Uncertainty Persists ETF inflows show that investors continue to evaluate next steps amid signs of a likely rate cut. Bond ETF performance and yields examined in the aftermath of rising rates and inflation. Active ETFs are on a trajectory of declining costs as their popularity has expanded. Vanguard's Samuel Martinez, CFA, Head of Index Fixed Income Product; Andrey Kotlyarenko, CFA, Equity Index Senior Investment Product Manager, and David Sharp, Senior ETF Capital Markets Specialist, outline the latest developments. #etfs #economy #interestrates https://lnkd.in/dCXxGPpa