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MSCI ESG Leaders Index
Every asset manager, portfolio manager or investment advisor is currently confronted with the three magic letters ESG. Many clients want to know what impact the integration of ESG criteria has on their investments.
Multifactor Equity Forecast: Update September 2021
A lot has happened on the financial markets in recent weeks and months. Emerging markets in particular have been characterized by high volatility. Therefore, it is worth taking another look at our country/region equity multi-factor model and its forecasts.
Real added value with Swiss equities
More than a hundred years of empirical evidence indicates that equities, while highly volatile in the short run, reward investors with a higher return over bonds and cash in the long run. This return differential, the so-called equity premium, is the reason most investors invest in a diversified equity portfolio.
BBB Bonds: Stable - Popular - (Over)Valued?
A look at the historical development of the credit risk premium of European investment grade corporate bonds is instructive ...
Emerging market equities in 2021
The economic, monetary, commodity, and trade policy changes that have driven global equity market trends since 2018 are evolving rapidly and should continue to favor emerging markets over developed markets this year.
Low Risk is not No Risk
The announcement in early November that the first vaccines have been successfully tested and approved by health authorities, combined with other large stimulus packages, has triggered a fierce sector and style rotation in the markets. This rotation is a clear sign that markets expect a clear pick-up in economic growth after Q2 2021.
Beauty is in the eye of the beholder: Are stocks highly or lowly valued?
Financial markets reflect investors' expectations about the future; therefore, it is hardly surprising that they were chaotic in 2020. The resurgence of risky assets amid a fragile economy raises the question of whether bubbles have formed in certain assets or whether the ups and downs are explained by rapidly changing fundamental factors
Multifactor stock market forecast 2021
In early 2020, we first reported on our equity multi-factor model for countries/regions and its equity market forecasts. The factor-based method ranks countries or regions according to their attractiveness. The criteria used are price-momentum, valuation, earnings-growth and quality.
Risk Rally in November
The SPI rose by 8.41% in November, the best November performance since the index has been calculated and the highest monthly performance since the end of the financial crisis (June 2009). The SPI thus lagged behind the MSCI World Index of 11.45% in Swiss francs.
Zombie-Bonds
For some months now, the familiar Fallen Angels (see our blog of Nov. 12) have been pushed out of the headlines in the capital markets by the more fearsome Zombies. Zombie companies are characterized by the fact that they cannot die.
Emerging Market Equities (EMMA) or Asia+ ?
Skeptics often talk about investing in emerging markets as nothing more than an Asia-plus strategy, since Asia makes up 80% of the index. As is all too often the case in media financial discourse, opinions are quickly expressed; this says nothing at all about the substance of the content.
Opportunities with Fallen Angels in the Current Bond Market
The awareness of the extent and characteristics of this crisis came late for many. The decline in sales of many companies was not 10% or 20% as in a normal recession, but collapsed to 30% or in extreme cases to 0% during the lockdown. The financial markets reacted violently.