Analysts Corner: 12/12/23

Weekly Market Recap

A look back at the financial markets over the past week and a look ahead at key economic developments this week.

Source: JP Morgan Asset Management

Weekly Macro Recap

A look back at key macroeconomic and geopolitical developments that help us contextualize the current investing landscape.

Source: Luke Gromen, FFTT

Fed Expected to Hold Rates Steady Wednesday. Wall Street will be Listening for Any Hints of Cuts.

The Federal Reserve is widely expected to hold interest rates steady this Wednesday during the central bank’s last policy meeting of the year. It is also expected to caution against making rate cuts anytime soon, defying the expectations of some on Wall Street who expect that easing to happen as early as March.

Source: Yahoo Finance

UK Firms Pause China Investment Decisions as Growth Slows: Survey

Sixty percent of British firms feel that a slowing Chinese economy presents a bigger challenge to their operations in the Asian giant than strict COVID curbs in place until late last year, according to the British Chamber of Commerce in China.

Source: Reuters

Beyond China: What Does the Rest of the EM Equity World Have to Offer?

Research suggests that investors should consider breaking out emerging market (EM) ex-China equities from Chinese equities in their EM allocations. EM ex-China offers the potential for higher returns and lower risk than China, as well as a superior translation of GDP growth to earnings and returns.

Source: Wellington

Private Debt: A Primer

At $1.6 trillion in AUM globally, private debt (excluding real estate) has already cemented its status as a sizable and scalable asset class for a wide range of long-term investors. That said, it still represents a modest 12% of the broader alternative asset universe, which totaled $13 trillion as of March 2023, per Preqin

Source: Blackrock

Can Chinese Equities Withstand a Slowing Economy?

China’s multi-decade period of high growth has come to an end, but the opportunities for investors have not, argue Evan Brown and Sylvia Liang.

Source: UBS