All Fall Down

Everyone loves momentum on the way up, but on the way down, not as much. For market cap weighted indices, there is a clear pattern observed in the performance of the largest constituents: after hitting a peak weight, crowded trades can weaken quickly, writes Preston Schwartz, Quantitative Analyst, and Jason Wang, Global Head of Quantitative Research. For active managers, these can be critical periods to deliver outperformance.

Which Market Had the Best Performance in the Last Decade: China, Japan, Europe or Emerging Markets?

While the U.S. was dominating global equity markets, Japan quietly outperformed China, emerging markets and Europe over the last ten years. The past decade's results were shaped by domestic corporate reforms and cultural changes, as well as the growing demand for technology, explains Daisuke Nomoto, Head of Japanese Equities. These are positive trends, we believe, that will drive the Japanese market for years to come.

What Inversion? Fourth Quarter 2019 Fixed Income Update

The Federal Reserve put in place its third and final rate cut for 2019 during the quarter, moves that reversed three out of the four rate cuts in 2018. This seemed to restore calm in the markets, as the 10-year Treasury yield, in decline for much of the year, was range-bound for the remainder of the year. Our U.S. Fixed Income Team reviews fourth quarter market drivers, as well as their near-term outlook for bonds.