University endowments are starting to take sustainable investing seriously, not only because students are urging them to but also because we think it’s proving to be good investment practice. For endowments looking to get started — or to expand upon their sustainable practices — here are three ideas to consider.
U.S. Treasury yields declined last week, led by longer maturities.1 Market sentiment weakened after President Trump failed to announce progress on a U.S./China trade deal. Rates fell and the yield curve flattened in response.
We expect a clear Conservative majority in Parliament, which should bode well for the prime minister’s Brexit agreement. But the real work would come afterward.
Equities rose for the sixth straight week, marking the longest streak in two years.1 Trade issues remained in focus, as investor optimism over the Phase One trade deal has been rising.
Confusion and consternation over the stock market’s relentless ascent into uncharted territory is shared by Wall Streeters and Main Streeters alike. Both camps are seemingly astonished by the durability and elasticity of this bullish cycle, but neither seems convinced that the uptrend is rooted in reality.
We would argue the most popular way to value individual stocks and the stock market is using earnings, with investors taking what a company or the market has earned (“reported earnings”) or what a company or the companies that make up the market are expected to earn (“estimated earnings”) and applying a multiple (“Price to Earnings” or “P/E Ratio”) to that number and arriving at how a company or the market is valued or how they think a company or the market should be valued, typically using the S&P 500 as a proxy for the broad market. Investors often disagree about what constitutes a “fair” multiple for a company or the market, but most agree a low interest rate environment supports a higher multiple, which is one of the reasons we feel the S&P 500 isn’t overvalued at 17x its next twelve month (“NTM”) earnings.
The equity market has played an early role in sustainable investing, while bond markets have lagged in data, tools and insights. But that’s changing fast, as we detail in a new publication: Sustainability: the bond that endures. New ESG indexes have created building blocks that can be used to bring sustainability into the core of portfolios, even in asset classes such as emerging market (EM) debt that until recently lacked sustainable solutions.
Global equities rose for the sixth straight week, led by the U.S. Manufacturing in the U.S. may gain for a third straight month.
Global equities gained 0.4%, led by the U.S. and followed by non-U.S. developed markets and a loss in emerging markets. Stocks have gained for a sixth consecutive week and 22.5% this year. The yield curve modestly flattened, with the 10-year Treasury yield 22 basis points above the two-year yield.
Has any political referendum led to more consternation and hand wringing than Brexit? Nearly three and a half years after the United Kingdom voted to usher in a new epoch in European history, we still do not have a clear vision of what the future may bring for the continent. In the last few months, a series of twists in the Brexit story has begun to lay out a variety of scenarios worth examining as we review their implications for global investors.
U.S. trade trouble continues with a “Phase One Deal” less than imminent, the IEA asserts how U.S. shale-oil production will reshape global energy markets and don’t hold your breath on a December Fed rate cut.
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