Capital Markets: Observations and Insights
Key Observations and Themes
Reframing Risk Traditionally accepted metrics are part of an imperfect shorthand intended to capture fundamental risk. We believe risk should be evaluated in the context of fundamental durability. Younger than It Looks While the economic expansion is chronologically old, many metrics are closer to middle age than senior. We believe the end of the expansion is not imminent. Style Divergence Powerful structural forces are causing Growth to diverge from Value. Investors looking for a reversion to the mean may be disappointed. Accelerating Innovation Innovation is speeding up and changing the way the economy behaves, increasingly driving stock performance.
The Search for Yield Falling interest rates are driving investors to seek out yield, even in equities.
Additional Insights A framework for forecasting future stock returns and more.
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