THE WisdomTree BLOG
Balancing global opportunities against regional risks: Why you might consider global quality equity
Five reasons why we believe Indian equities could spice up your portfolio
India is at an interesting crossroad where leadership is pro-actively taking tough reforms for long-term growth. Two pillars of the Indian economy, that is consumption and demographics, have encouraging projected growth numbers.
Over the past few months since the US election, markets have been driven by the expectation of the reflation trade and the positive impact on both the US economy and equities.
Despite China's Q1 6.9% growth rate, the 2017 target is 6.5%, a touch lower than the 6.7% GDP growth achieved in 2016. With these lower projections, can investors remain optimistic? Vania Pang, of ICBC Credit Suisse Asset Management (International) Co. Ltd. (ICBCCSI)’s, Capital Market and Investment Solution of Index and Quantitative Investment team, weighed in.
Le Pen vs Macron: How is your portfolio positioned?
first round of the French elections
Infographic: 2017 European Geopolitical Risks
View our infographic to read our coverage of this year’s European geopolitical events and risks.
We maintain our view that Japanese risk assets—equities and real estate—are on track for a multiyear structural bull market. We believe 2017 is poised to bring a positive reversal of earnings momentum, with a pickup in top-line sales growth and a weaker currency capable of delivering 25% to 30% earnings growth (after last year’s drop of around 8%, calendar year). Given the relatively attractive valuation backdrop—TOPIX is trading at a modest discount to its 10-year averages on both trailing and forward P/E multiples—the rising visibility of earnings is likely to be the principal driver of Japan’s market performance. In contrast, we expect policy action and initiatives to be relatively less important market drivers for Japan, and the Bank of Japan (BOJ) to stay put and maintain its zero-rate 10-year bond yield target for the foreseeable future.
Does currency hedging have a branding problem?
One topic we often find exploring with investment professionals is the role of currency risk in international portfolios. We believe the industry has a branding problem with currency-hedged strategies; this is a legacy issue that may never be fixed for the industry, so education is critically important. The branding issue goes to the heart of what should be the default choice for international investments, in our view.
Five things you need to know about trading oil
“Team Trump” demonstrated exemplary global economic leadership skills at last week’s Summit between President Donald Trump and China’s President Xi Jinping. Most importantly, both leaders agreed to a concrete agenda of dialogue and engagement: At the working level, both nations committed to a “100-day plan” to address bi-lateral trade issues, with progress overseen by the two Presidents directly; and at the top level, President Trump accepted President Xi’s invitation for a follow-on bi-lateral Summit in China sometime later this year.
Oil supply glut not yet over: Learn how to position around oil’s latest slump
Our thoughts on how to position around the first round of French elections
The French Presidential election looks set to be a three-way contest between Marine Le Pen, Emmanuel Macron and Francois Fillon. One of these candidates will be eliminated following the first-round elections on Sunday 23 April, and we foresee three scenarios potentially unfolding.
This article outlines our view on each scenario and provides an asset allocation perspective on how investors might position tactically using short and leverage ETPs and strategically, through our smart beta ETF solutions.
ECB tapering positive for Italian banks
What Article 50 triggers: Domestic demand uncertainty New risks for Sterling assets, better opportunities for dividend stocks
This blog is part of a series of blogs covering this year’s European geopolitical risks. Click here to view our 2017 European geopolitical risks infographic, highlighting this years’ key events to watch out for.
Theresa May will soon begin Brexit negotiations with a long list of demands in her hands. Her priorities include the creation of a new trade deal, retaking control over immigration and restoring British law-making sovereignty. But while the government remains hopeful for a favourable deal, UK domestic assets remain most at risk from the macroeconomic uncertainty lurking ahead. More insulated from these risks are ironically, broad UK equity exposures—dividends in particular.
Nizam Hamid is an ETF Strategist for WisdomTree in Europe and has extensive experience in the European ETF market. Prior to this he was at C8 Investments, a systematic hedge fund, focusing on business development and quantitative strategies, before that he was a consultant at FTSE. From 2010 to 2012, he was Head of ETF Strategy and Deputy Head of Lyxor ETFs, at the time Europe’s second largest ETF issuer. Before joining Lyxor he was Head of Sales Strategy for the Europe and the Middle East at iShares in London. Prior to that, he was Global Head of ETFs, Portfolio and Index Strategy at Deutsche Bank from 1998 to 2008. He has also worked as a quantitative analyst in London and Tokyo for UBS, BZW and Bankers Trust / NatWest Markets. He holds a Degree in Economics from the University of Liverpool.
Director of Research
Viktor, who has over 14 years’ experience in research, joined the firm from Renaissance Asset Managers where he was Head of Research. Viktor provides macro research on various themes covering equities, commodities and fixed income. His research for WisdomTree in Europe offers investment strategies for the current range of Smart Beta UCITS ETFs as well as the Boost range of short and leveraged Exchange Traded Notes. Viktor has previously worked as a Research Analyst at BlackRock and Thomson Financial. He started his career as an Equity Strategist at Commerzbank, after he completed a Masters in Economics from Maastricht University, in the Netherlands.
Nick Leung is a Research Analyst for WisdomTree in Europe. He is responsible for macroeconomic commentary and analysis, formulating investment strategies and trade ideas, as well as the maintenance of research collateral. Prior to joining in 2015, Nick was at Source, having completed his Master’s Degree at Imperial College London. During this time he was also involved in an ice-cream entrepreneurship project with Unilever. Nick holds a BA in Economics from the University of Nottingham.
WisdomTree's Head of Japan
Capital Markets and Investment Solutions, Index and Quantitative Investment, ICBC Credit Suisse Asset Management (International) Company Limited
Ms. Pang holds a M.Sc. in Development Finance from The University of Manchester, a M.A. in Journalism and a B.A. in Business Administration from The Chinese University of Hong Kong.