Yuan Worries/Financial Stress Points/Equities Unloved/Property Anger/Trade War & IPR

Asian Equity Markets (Ex-China) Overview; Korea, Taiwan and India

Global Asset Allocation, Politics & Governance, Ecstrat

John-Paul Smith

Global Asset Allocation, Politics & Governance

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
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More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Cross Asset Strategy

Multiple Countries / Cross Asset Strategy

<p>The sharp sell-off in equity markets is likely to prove a watershed moment in the current market cycle, as the catalyst for a downgrading of global growth expectations as the post-1991 settlement in favour of capital and the globalisation of trade and investment, begins to reverse. The correction in the S&amp;P could provide emerging markets with some temporary relief, if Trump and/or the Fed begin to waver in terms of China sanctions and monetary policy respectively, but that is unlikely to alleviate the underlying governance and other issues, which face the majority of emerging markets. </p>

The sharp sell-off in equity markets is likely to prove a watershed moment in the current market cycle, as the catalyst for a downgrading of global growth expectations as the post-1991 settlement in favour of capital and the globalisation of trade and investment, begins to reverse. The correction in the S&amp;P could provide emerging markets with some temporary relief, if Trump and/or the Fed begin to waver in terms of China sanctions and monetary policy respectively, but that is unlikely to alleviate the underlying governance and other issues, which face the majority of emerging markets. 

Equity Market Correction Marks Watershed Moment for Global Growth Expectations