The fear that persisted in the aftermath of the Global Financial Crisis (GFC) has been replaced by complacency and growing excesses in many markets. It was difficult to lose money in 2017, as 38 of the 39 major asset classes monitored by Deutsche Bank delivered positive returns. As measured by the MSCI World Index, equities climbed in every single month of 2017 and have now delivered a 237% total return since their 2009 lows.2 Stock market valuations have become stretched by historical measures, while interest rates, credit spreads, and volatility hover near all-time lows. Reflecting th
Strong gains were delivered across most markets and asset classes during the third quarter, fueled by synchronized (yet tepid) global economic growth, a benign inflationary environment, and continuing unorthodox monetary policies. Improving corporate earnings further supported market strength with emerging markets and the most economically cyclical industries leading markets to all-time highs. Meanwhile, volatility levels, as measured by the VIX index, fell to all-time low levels. This inherent complacency is unsettling in light of historically low interest rates, high valuation levels,
The world is changing fast. The threat of disruption is real and growing with the potential for catastrophic outcomes for companies and industries across the globe. Once formidable barriers to entry are breaking down under the onslaught of new, fast-moving competitors empowered by the changing dynamics of the mobile internet age.
The Altrinsic Global Equity portfolio gained 5.9% in the second quarter, outperforming the MSCI World's 4.0% rise as measured in U.S. dollars. Outperformance was overwhelmingly driven by stock-specific factors, most notably delivered by our investments in Nintendo (Japan), Ionis Pharmaceuticals (U.S.), Heineken (Netherlands), Nestlé (Switzerland), and Intercontinental Exchange (U.S.). At the broad market level, underlying corporate earnings have been strong, but the degree of complacency in many markets concerns us.
Global equity markets, as measured by the MSCI World Index gained 6.4% during the first quarter. The Altrinsic Global Equity portfolio returned 5.0% over the same period, as measured in U.S. dollars. An improving outlook for corporate profits in many parts of the world, easing of stresses emanating from China, and a continuation of reflationary central bank monetary policies outweighed the ongoing geopolitical uncertainties, lofty asset valuations, and macroeconomic imbalances in many of the world’s largest countries.
The Altrinsic Global Equity portfolio gained 0.7% and 11.9% during the fourth quarter and full year, respectively. By comparison, the MSCI World gained 1.9% and 7.5% over the same periods, as measured in U.S. dollars. Strong absolute and relative gains were delivered during an eventful year in which key developments, most notably Brexit results and the election of Donald Trump, defied the odds makers.
The Altrinsic Global Equity portfolio gained 2.7% during the second quarter. By comparison, both the MSCI World and ACWI indices increased 1.0% as measured in U.S. dollars. Stock-specific factors were the primary sources of outperformance amidst an eventful macro backdrop. During the quarter, British citizens voted to leave the European Union, concerns about the European banking system intensified, Middle East unrest spread to distant lands, and the yields on U.S.
'Imagine being a table to re-writ the genetic kode of any organism including tumans.' This sentence obviously makes no sense. Now imagine these spelling mistakes occurred in your genetic code (genome). Your genome is made up of a four letter alphabet, consists of three billion letters and resides in every one of the cells in your body. It defines who you are. To put this in perspective, the Complete Works of William Shakespeare is based on a 26 letter alphabet and has about six million letters.
A transition appears to be underway. Global equity markets have delivered above-normal returns during the last seven years with low volatility and few lasting setbacks, but we may have entered a new environment characterized by more normal returns albeit with much greater volatility. The first quarter was reflective of this increase in volatility, as a 12% rally in the MSCI World Index during the second half of the quarter tempered anxieties that emerged during the 13% dip in the first half, as measured in local currency terms.