These reforms coupled with strong balance sheets and demographics will support higher levels of global growth for decades to come.
The investment world is changing quickly and 2015 should prove to be a very interesting year, but we see no reason to change our long-held positive view on global equities.
Recently, two major voices in the "core Fed" (Fischer and Dudley) have indicated that despite low inflation, the Fed's main scenario is to begin hiking rates in mid 2015.
China's economy likely slowed much more than the official statistics show; otherwise, the government would not have reversed course on its various crackdowns, especially on the property market.
Our Global Investment Committee always seems to meet in the middle of great volatility, and this time was no exception, with the investment world facing all sorts of new challenges.
In our view, the LDP coalition's maintenance of a strong two-thirds majority in this election will greatly help Prime Minister Abe and his party's reform efforts, while likely bolstering Yen weakness to some degree.
US Treasuries (UST) ended the month stronger, trading within a relatively tight range for most of November. At month-end, 10-year UST was yielding at 2.16%, 18 basis points (bps) lower than October.
Asia Pacific ex-Japan markets were volatile in November, with the MSCI Asia Pacific ex-Japan Index down 1.3%, dragged down by MSCI Australia Index which returned -6.3% in USD terms.
The Asia-Pacific region is evolving and reforming rapidly, both in terms of developing and developed countries. Over the course of the next 10 years, Asia-Pacific, including Japan, will become a default allocation in investor portfolios.
Asia is evolving rapidly, which has implications for investors globally. It should no longer be viewed as just a cheap manufacturing hub, but a region with high value-added industries catering to an increasingly wealthy middle class.
As we move further away from the turbulent period between 2007 and 2009, interest in credit has increased rapidly as investors globally search for extra return in a low yield environment.
If the RBA does cut interest rates, it is likely that they will make more than one cut, so we could see Australia's official cash rate at 2.00% by the second quarter of 2015.
Many empirical studies have shown that a value style approach to investing in Australian shares has consistently outperformed growth investing - and with less risk.
The three main points from our prior report on this topic have not changed; however, there are a few more anomalies in the data this time.
The Japanese equity market for the most part maintained a strong tone in 2014, with the Nikkei Stock Average at one point in December rising intra-day above JPY18,000 - a level it had not seen since July 2007.
With a slowdown in consumer demand following the April consumption tax hike, a second straight quarter of negative GDP growth in July-September, and unseasonably cold weather resulting in an even further drag on consumption, Japan appears to be only halfway through to achieving its goals of putting an end to deflation and reviving the economy.
Growth continues to be a strong theme in Asia making the case for investing in the region a compelling one. The Asia ex-Japan (AxJ) region has more than doubled its share of the global economy since the Asian financial crisis.
2014 has become a landmark year for green bonds, having become one of the few sustainable investment instruments to reach a suitable scale and poised to enter the mainstream for global institutional investors.
Equity investors should not fret too much about weak macro data, as Japanese companies have been able to overcome such for nearly a decade through rationalization and improved corporate governance.
The ultimate beneficiary of most of the manager's investment decisions is an individual investor with particular needs and requirements. This may sound obvious, but actually it often gets ignored.
Moody's downgrade of Japan to A1 will likely have very little effect on bond yields, the economy or risk-asset psychology. The major reason why is due to its odd premise of predicting too much success of Abenomics, while most market observers are not so optimistic.
Three important things to know about the recently announced Japanese GDP statistics that indicated that the country was in a recession.
The argument within the investment community over which offers better results continues to rage. However, we think that a more important question is being missed—are investors getting what they expect from the two investment styles?
We examined the relationship between a country's working age population and its listed company corporate earnings for ten nations, and found that the relationship is ambiguous at best, with correlations ranging from positive to strongly negative.
US Treasuries (UST) rallied in October – a month that saw dramatic movements across asset classes. The US Federal Reserve (Fed) ended its bond-buying program following the October policy meeting.