While the risks of today’s low-volatility stock market are clear, we continue to believe the next sell-off in the broader market will be a correction, not the beginning of a new bear market. Look for a rotation out of the growth-oriented fare and into cyclical and value groups.
For some time, mining companies thought diversifying their portfolios was the best way to improve cash flow stability and protect themselves from natural resources cycles and increased volatility. That hasn’t worked, at least not as expected.
A strategic spin-off will highlight this industrial player’s promising life sciences business and unlock value for shareholders. Another across-the-board selloff after the industrial sector’s recent rebound would create an ideal buying opportunity.
European equities have delivered impressive total returns this year on a constant-currency basis, but currency headwinds have eroded these gains for US investors. We take profits on previous picks, update our outlook for the EU economy and highlight some new favorites.
The last of Prime Minister Shinzo Abe’s “three arrows”—structural reforms—will be critical to ending stagflation and stimulating Japan’s economy. We dig into Japan’s macroeconomic picture and highlight our favorite stocks.
The vaunted diversification offered by exchanged-traded funds (ETF) dilutes your potential upside by offering exposure to a mix of winners and losers. Investors seeking differentiated performance should focus on building a balanced portfolio of individual stocks.
With the European Central Bank planning to start buying bonds and asset-backed securities, cyclical stocks represent the best bet for value-oriented investors seeking exposure to the Continent’s comeback story.
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