The second quarter of 2016 ended with a bang, as the United Kingdom voted to leave (“Brexit”) the European Union on June 23. This marked the second time in six months that global stock markets experienced severe stress, following the worst January in recorded history.
In a world flooded with up to the minute stock market movements and a 24/7 global news cycle, people must distinguish between entertainment and information.
Continued US expansion and normalizing monetary policy; greater (but select) global exposure; and avoiding specific credit market stresses are 3 key trends.
Balentine CIO Adrian Cronje was quoted in the Wall Street Journal for the article “Advisers Debate: China Market Woes a ‘Wake-Up Call’?”
Balentine’s Investment Strategy Team has regularly looked to China and other emerging market economies as part of our Art and Science approach to investment management. From housing bubbles to commodities markets, China has loomed large in our discussions. As we examined each of these issues in search of opportunities, we have found that China’s Great Migration […]
When the acronym “BRIC” was coined in 2001 to describe the economies of Brazil, Russia, India and China, many believed the new term was simply a marketing ploy. Today, “BRIC” has become so ubiquitous that economists typically use the term to refer to emerging markets as a whole. However, given the rising importance and increasing presence of certain growth characteristics in a number of other countries, the term “growth markets” may more fully represent the great diversity of emerging market economies.
Last week, China’s economy grabbed headlines as authorities revised their growth rate expectations to 7.5%, down 1.5% from before. With this announcement, many wondered about the overall health of China’s economy and whether China was finally experiencing a “hard landing.” As a proponent of a global investment strategy, Balentine has carefully monitored China’s progress over the last two years, and we believe the recent reports regarding China’s economy were more about perception than reality.
The year 2011 was one filled with many ups and many downs – not just on the stock market. Everything from natural disasters to politically-created ones affected markets. In this three part series, we will look back at the last twelve months at some of the biggest factors influencing the economy and their potential impact going forward. In Part Two of this series, Balentine discusses the increasing importance of the emerging world over the past year and the issues we’ll continue to monitor as we enter 2012.
On September 1st, copper prices fell after export orders from China, the world’s largest copper consumer, declined for the first time in two years. Crude oil numbers, down 25% from April’s high, didn’t fare much better. Both copper and crude oil prices indicate the vitality of commodities markets and by extension, emerging markets, whose rapid economic expansion is closely correlated to commodities prices. Despite the continued strong performance of gold (another key commodity), many investors are left wondering if commodities and emerging markets can sustain their current growth levels or whether momentum is finally starting to slow.
In a recent Forbes BRIC Breaker blog, Kenneth Rapoza revisited the current state of China’s housing bubble, arguing that a correction is, in fact, afoot. Rapoza cited Soufun.com, China’s leading real estate information website, noting that Beijing’s new home prices fell in May compared to prices during the same period in the previous year. While the market is experiencing a downturn, our research suggests that China’s housing bubble shouldn’t burst for approximately three years because of the government’s careful regulation of the housing industry.