Displaying items by tag: equities

Francois Rochon once observed that true investing success comes not from avoiding market volatility but from using it to one’s advantage—a mindset that resonates deeply today. 

Markets, by nature, swing between extremes, and the recent months have been no exception, testing the patience of even seasoned investors. Rather than reacting emotionally to these shifts, investors are increasingly turning to structured approaches that bring consistency to decision-making. 

One such approach is factor-based investing, which allocates capital based on specific attributes like profitability, low volatility, or long-term momentum. This strategy reduces reliance on market timing and instead builds portfolios grounded in time-tested characteristics. 

Finsum: In uncertain environments, such disciplined frameworks can offer clarity and help investors stay focused on enduring outcomes rather than short-term noise.

Although it's common to think small-cap stocks suffer most during recessions, the data tells a more nuanced story. Analysis of developed markets shows that in 64% of years when GDP declined, small caps actually outperformed large caps—a rate even higher than their typical performance advantage. 

This finding challenges the belief that economic slowdowns always disadvantage smaller firms. One reason may be that financial markets are inherently forward-looking, often pricing in future recovery well before it's visible in economic data. 

As a result, the size premium—where small caps outperform—can still emerge during downturns. Ultimately, small-cap strength isn't strictly tied to GDP trends, underscoring the importance of long-term diversification over short-term predictions.

Finsum: This is much different than the interest rate driven volatility several years ago, this could be a great time to capitalize 

Dodge & Cox Emerging Markets Stock earned a Medalist Rating upgrade to Silver from Morningstar, thanks to increased confidence in its disciplined mix of qualitative judgment and quantitative screening, particularly valuable in navigating under-researched segments of emerging markets. 

This hybrid approach, while unusual for the firm, uses a valuation-weighted model to flag potential opportunities, especially among smaller-cap names, before handing decisions over to the fundamental research team. Since its 2021 inception, the fund has delivered solid performance, outperforming a majority of its peers and its benchmark. Its portfolio, broader than other Dodge & Cox offerings, includes over 200 holdings with considerable overlap in top names with the firm's international strategy. 

The JPMorgan US Research Enhanced Equity fund also saw a Morningstar upgrade, thanks to a highly stable and experienced 19-person analyst team that has consistently driven strong stock selection within a benchmark-aware framework.

Finsum: Now, could be a good opportunity to capitalize on certain EM as trade disrupts markets. 

Emerging-market stocks declined for a third straight day as anxiety mounted over President Trump’s upcoming global tariff rollout. The benchmark index for developing-nation equities dropped 1.6%, hitting its lowest intraday level since mid-March, with Taiwan’s Taiex plummeting 4.2% and officially entering correction territory. 

Investors across the globe pulled back ahead of the April 2 tariff deadline and a week packed with key U.S. economic data, including Friday’s jobs report. Strategists from Brown Brothers Harriman expect strong U.S. data to lift the dollar and continue pressuring emerging-market currencies.

Despite this week’s volatility, emerging-market assets are on track to post quarterly gains, aided by a softer dollar and hopes of a slowing U.S. economy. Meanwhile, South Africa’s rand rose on signs of a potential budget agreement, and Thai officials reassured investors of economic stability following a damaging earthquake in Myanmar.

Finsum: Without a roll back in tariffs, emerging markets are going to be difficult to navigate in the coming months. 

Global stock markets declined this week as investors braced for new U.S. tariffs that have heightened recession fears. The S&P 500 briefly fell into correction territory before rebounding, but it still posted its worst quarter since 2022. 

The uncertainty surrounding trade policy pushed the CBOE Volatility Index higher and drove investors toward safe-haven assets like gold, which reached a record high above $3,100 an ounce. 

Asian and European markets also struggled, with automakers hit particularly hard after Trump announced a 25% tariff on imported vehicles and parts. Meanwhile, CoreWeave's stock tumbled after its IPO, and Hong Kong’s CK Hutchison declined as a Chinese regulatory review delayed a major ports deal.

Finsum: Investors are flocking to bonds for any chance of relief, but this could be the time to buy on the bottom of the market if Trump pulls the rug on tariffs once again.