An Analysis on EAFE Equities

Investors remain wary of equities in the Europe, Australasia and Far East (EAFE) regions and argue over whether the allocation to EAFE equities is still justified, particularly given various downside risks. Research has indicated that investors in equities of those regions are growing impatient. Even though there has been substantial earnings growth, equities generated a negative total return last year. A trend of disappointing performance is akin to the performance seen in the last decade. Keith Knutsson of Integrale Advisors notes that "EAFE equities have a 6% median annual total return over the last 10 years, which is half that of the prior four decades. Even on terms of relative performa

Japanese Equities: Foreign Withdrawal

Investors might already know the major impact foreign investors have on Japan’s equity market. Japanese equity returns tend to have a relatively strong correlation with the net inflows or outflows of foreign investors. This was witnessed in 2018 when Japanese equities decline of 16% occurred along with the largest foreign outflows since the global financial crisis. This year, according to data from the Japan Exchange Group, foreign investors have offloaded a net 1.5 trillion yen of local equities this year through to March 8. The outflow was believed to be caused by concerns about Japan’s vulnerability to slowing global growth and rising trade tensions. A deceleration of China’s growth would

The Investment and Innovation Status in the United States

Keith Knutsson of Integrale Advisors states "The US benefits from long-term structural advantages through its investment-friendly economy. A level of innovation and productivity, favorable demographics and its strong institutions are all factors that support better-quality economic and earnings growth." The US ranks in the top 10% of all countries across economic freedom, ease of doing business, global competitiveness and world governance indicators. The US is mostly only surpassed by small countries such as Switzerland. The World Economic Forum’s Global Competitiveness Index—which considers macroeconomic stability, innovation capability, market size, business dynamism, and institutional st

Putting US Growth into Perspective: Leverage

Favorable economic data over the last decade, paired with a benign inflationary backdrop, has enabled US companies to generate a stronger earnings recovery over this cycle than other countries and regions. Earnings in the US are 71% above their pre-crisis peak, compared to 45% in China, 17% in Japan, and declines in the UK, Eurozone, and emerging market countries in aggregate. With respect to the prosperity of individual citizens, US GDP per capita has increased by 33% since the trough of the global financial crisis eclipsing other developed and emerging economies. Meanwhile, China’s GDP per capita, which is below the poverty level of the United States on a nominal basis, is not projected t

Featured Posts
Recent Posts

© 2018 by Integrale Advisors

  • VisualCV
  • Xing logo
  • Instagram Social Icon
  • Pinterest Social Icon
  • Google+ Social Icon
  • Facebook Social Icon
  • LinkedIn Social Icon
  • Twitter Metallic
  • Tumblr Basic Black
  • Blogger Basic Black
  • wordpress icon.jpg
  • Flickr Social Icon