FEG's Research Review brings you the monthly economic and market commentary, as well as an in-depth focus on a current topic of significance.
April 30, 2015
Over the past few years, emerging markets (EMs) have been seen as subject to developed market demand swings, GDP growth, and commodity prices, effectively becoming a residual discussion to other headlines. Consequently, emerging market equities have widely been viewed as the marginal capital destination for risk seeking investors. Collectively, and in spite of their long-term economic prospects and attractive relative and absolute valuations, EMs have been treated as the proverbial redheaded stepchild. I say that not from the perspective of personal sensitivity (I do have red hair, what is left of it, but I am not a stepchild, unless you count step-son-in-law), but from the perspective of one who is willing to take a more critical look and ask “why?” To that end, I ask, “Why is such a disparate group of countries treated as an indistinguishable amalgam of economies, political systems, and demographics with uniform government resources, credibility, and objectives?”
FEG's Capital Quarterly Review delves into alternative investments such as natural resources, private equity, and private real estate.
December 31, 2014
It is that time of year when every publication takes stock of the old and prognosticates on the new. I confess to being jealous of the apparent certainty expressed by the newsstand publications. With so much complexity, so many variables, how do they know? I am comforted to be in good company. Former U.S. Treasury Secretary Robert Rubin wrote in his book, In an Uncertain World, “Some people are more certain of everything than I am of anything.” Contemplating the unknown or unknowable is a worthwhile exercise when investing, although perhaps the antithesis to selling headlines. So, what went right and what went wrong in 2014? Events impacting the private capital markets in 2014 generally fell in line with expectations—until the shock in oil prices late in the year. Liquidity remained plentiful, public equity returns attractive, and global interest rates remarkably low.