Stocks and Sectors Outlook

Stocks and Sectors Outlook - Articles & White Papers

Whilst our "Global Strategy Outlook" section considers equities at a broad market level, our "Stocks and Sectors Outlook" section is for investment research which includes commentary about individual stocks, or analysis at the industry sector level. Among the most popular articles and reports in this section are those that cover IPO trends, volatility, M&A, REIT valuations, value versus growth, low volatility portfolios, the real estate sector and the resource sector.
  • Citi

    Disruptive Innovations IV: Ten More Things to Stop and Think About (Citi, 2016)

    • 21 Nov 2016
    • Company: Citi

    The fourth in a series from Citi GPS, this edition examines 10 more innovative technologies and new products which are disrupting their sectors. This edition covers:

    1. Big Data Disruption - The Big Data Revolution in Energy
    2. Contextual Commerce - What is Contextual Commerce?
    3. Direct-to-Consumer Marketplace - Another Threat to ...

    • Professional
    • Views: 1290
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  • QMA

    Start of Something Big: Demystifying the Source of Large Alpha in Small Caps (QMA)

    • 24 Jan 2017
    • Company: QMA

    In a world where alpha can seem scarce, active small-cap managers continue to outperform their benchmarks in an impressive way. But why? Investors have a general sense small caps are riskier and less efficient, but how these characteristics contribute to more alpha opportunities remains unclear. At QMA, we think it’s critical to understand the sources of returns so that you ...

    • Professional
    • Views: 1465
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  • Invesco (Europe)

    Risk & Reward: The Theory and Practice of Portfolio Insurance (Invesco, 2017)

    This issue of "Risk & Reward" examines the theory and practice of portfolio insurance: to achieve their goals, many investors are allocating towards more risky assets. In many cases, these investors can quickly find themselves in a tight spot if the risk budget is not expanded accordingly. This is where portfolio insurance can come into play. But, which strategy ...

    • Professional
    • Views: 1028
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  • S&P Dow Jones Indices

    A Case for Dividend Growth Strategies (S&P Dow Jones Indices)

    Dividend strategies have gained a foothold with market participants seeking potential outperformance and attractive yields, especially in the low-rate environment since the 2008 financial crisis. While traditional high dividend payers have performed strongly in recent years, they have become quite expensive by most valuation metrics. The previous low-interest-rate environment paved ...

  • T. Rowe Price

    Global Equities: The Changing Face of Value (T. Rowe Price, Nov 2016)

    For many value investors, the last few years have proved to be a challenging period given a backdrop of low growth, structural change in China, elevated macroeconomic risks, and bouts of volatility. This environment has led to a dominance of growth and quality factors, creating a meaningful headwind for value-oriented stocks.

    • Professional
    • Views: 1111
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  • The ongoing influence of DB pensions on the market valuation of the Pension Plan Sponsor (2016)

    This study by Llewellyn Consulting, on behalf of Pension Insurance Corporation, provides important updates on the impact of Defined Benefit pension schemes on the share price of the FTSE 100 sponsoring company. The findings provide further evidence of the significant and ongoing downward pressure that DB pension liabilities and pension deficits have on the market values of FTSE 100 ...

  • McKinsey & Company

    AI: The Next Digital Frontier? (McKinsey & Co, 2017)

    Artificial intelligence (AI) is ready for business but is business ready for AI? This McKinsey paper examines investment in AI, describing how it is being deployed by companies that have started to use these technologies across sectors. It aims to explore AI's potential to become a major business disrupter.

  • GMO

    Whiplash: On Value, Growth, and Ignoring the Fundamentals (GMO, June 2017)

    • 19 Jun 2017
    • Company: GMO

    After a decade of lagging relative returns, value equities delivered impressive performance in 2016, outperforming growth stocks by 10% in the US. As Exhibit 1 in the paper indicates, value started to break away in the second quarter due in part to an improving economic outlook and a view that central banks, in particular the US Federal Reserve, would pivot toward a more neutral ...

  • Citi

    Solutions for the Global Water Crisis: The End of 'Free and Cheap' Water (Citi, 2017)

    • 09 May 2017
    • Company: Citi

    Over the years there have been many academic studies, government policies, non-governmental organizations (NGO) reports, industrial plans, and others all focusing on ways to improve the management of water and reduce inefficient water use over time - and yet we are still faced with the problem of a looming global water crisis. So why haven’t we solved this problem? This paper by ...

  • Robeco

    Hedge fund bets show Low Volatility is still far from overcrowded (Robeco, Jan 2017)

    Thorough analysis of hedge fund data shows that, despite their flexible approach to investing, these funds tend to bet strongly against the low-volatility anomaly. This suggests that limits to arbitrage are not the main reason for this anomaly and that the low-volatility trade is still far from being overcrowded.

    Speed read

    • Hedge funds tend to invest more in ...

  • The Issue of Passporting: UK Financial Sector and EU Integration after Brexit (2016)

    If the UK cannot secure a ‘Norway’ deal and stay within the internal market after Brexit, the UK will lose passporting rights for EU financial services and access to euro clearing and settlement, both of which make London attractive as a financial centre. A substantial part of the UK’s wholesale banking and trading sector may move out. The paper has been authored ...

  • QMA

    Why Equity Investors Should Worry Less About the Fed (QMA, Nov 2016)

    • 14 Nov 2016
    • Company: QMA

    Many investors are eyeing the Fed’s December open market committee meeting as the most likely timing of its first interest rate hike in a year. Some fear a less accommodative Fed could soon be the proverbial straw that breaks the back of a market currently trading at Price to Earnings of around 20 times trailing earnings. QMA’s paper upends the conventional wisdom about ...

  • CFA Institute

    The Shiller CAPE Ratio: A New Look (Financial Analysts Journal, 2016)

    Robert Shiller's CAPE ratio has served as one of the best models for forecasting long-term future stock returns. However, recent future equity return forecasts (using the Shiller CAPE ratio) may be overpessimistic as a result of changes in the computation of GAAP earnings used in the model. This original research was conducted by Jeremy Siegel. It was published in CFA ...

  • PGIM

    The Investment Implications of an Aging World (PGIM, 2016)

    • 01 Apr 2016
    • Company: PGIM

    This paper examines aging populations, now a worldwide phenomenon, and seeks to identify investment strategy ideas that can be implemented by institutional investors. By 2040, the number of those aged 65+ will double from what it is today to reach 1.3 billion. And it's not just a Developed World problem - two-thirds of the world's seniors live in Emerging Markets. The ...

  • GMO

    FAANG SCHMAANG: Don’t Blame the Over-valuation of the S&P Solely on Information Technology (GMO, 2017)

    • 15 Nov 2017
    • Company: GMO

    In recent months, tech stocks have delivered stunning returns. The so-called "FAANG" stocks (Facebook, Apple, Amazon, Netflix, and Alphabet (Google) are up 36% on average year to date through September. This has led to many questions about the current valuation of the S&P 500, its sector composition, and comparisons to other markets. This GMO paper explores some of these questions.