Japanese Equities: Foreign Withdrawal

Investors might already know the major impact foreign investors have on Japan’s equity market. Japanese equity returns tend to have a relatively strong correlation with the net inflows or outflows of foreign investors. This was witnessed in 2018 when Japanese equities decline of 16% occurred along with the largest foreign outflows since the global financial Read More…

The Investment and Innovation Status in the United States

The US benefits from long-term structural advantages through its investment-friendly economy. A level of innovation and productivity, favorable demographics and its strong institutions are all factors that support better-quality economic and earnings growth. The US ranks in the top 10% of all countries across economic freedom, ease of doing business, global competitiveness and world governance Read More…

Market Outlook – Entering 2019

As investors enter 2019, the two largest economies in the world, the U.S. and China, both face challenges. First, will U.S. financial markets have a soft, bumpy or hard landing following the peak earnings and growth cycle seen in 2018? Second, will stimulus policies in China stabilize growth conditions in the year ahead? Resolutions for Read More…

Universities: The Problems with Academic Conglomerates

Major research universities are struggling with the forces of rising tuition, demographic changes, online learning growth, pressure on research funding, volatile endowment earnings, and overall dissatisfaction with graduate employment opportunities. All these are trends with significant risks for university departments, colleges, and central administrations. In practicality, research universities are similar to corporate conglomerates in structure, Read More…

U.S. Trade Deficit Rises

The U.S. trade gap rose to a six-year high in November. This was driven by an increase in imports as American consumers increased their purchases of household items, luxury goods, and other products. According to the U.S. Commerce Department, the trade deficit increased by 3.2% from the previous month to $50.5 billion. Both imports and Read More…

Fourth Time’s a Charm

Angela Merkel took a big step toward securing a fourth term as Germany’s chancellor after her party, the conservatives, and its center-left rivals agreed recently on the terms of a renewed governing alliance. After a week of talks covering areas such as taxation and immigration, Angela Merkel’s Christian Democrats and the Social Democrats (SPD), said Read More…

U.S. Consumer Prices On the Rise

A rise in consumer prices in December and growth in retail sales exceeded expectations. With 2017 ending on a good note, and inflation numbers steady, U.S. economic growth continues. Forecasts for Q4 growth were adjusted 0.4% in December from the prior month. Analysts are expecting a 2.7% annual growth rate for gross domestic product in the Read More…

The Tax Bill

Last week Congress passed a $1.5 trillion tax cut and the largest structural overhaul of the tax system since 1986. The Senate passed the tax-overhaul bill, 51-48 Wednesday 20th after it swiftly passed through the House on a 227-203 vote on Tuesday 19th. The measure then headed to President Donald Trump for his signature on Read More…

New Federal Reserve Chief and What it Means

As Janet Yellen’s term comes to an end, President Trump chooses Jerome Powell as the new Federal Reserve chief. The new chief could mean little change in monetary policy and a less aggressive approach to financial regulation. Economists are currently expecting the Fed to raise short-term interest rates next month and lift them three times Read More…