Equities

The lockdown in Shanghai is sending shockwaves through markets while the Chinese government is trying to handle the health crisis without losing face. Still, things seem to have stabilized, and there are hopes that the leadership will crank up the economy. Markets would benefit, and so could stock pickers, according to our mtx equity experts.

Like the end of a long evening of revelry, the decline in the fortunes of momentum growth and value companies leaves the Quality Growth investors, in our opinion – still standing. Companies with pricing power, low debt, and consistent earnings may be the slow but steady winners in the race to beat the market.

Bear markets do not send advance warnings. But investors can pay attention to red flags. Valuation multiples are well above the long-term average and consensus estimates are bullish on earnings growth. The good news is that investors can prepare for macro uncertainty and minimize capital loss.

As inflation is digging in its heels, employment markets are tightening up and economies are contracting around the globe, investors are faced with the uncomfortable truth that the Fed might be behind the curve. Now, much depends on whether the central bank is able to correct course to soften the landing for contracting economies or whether an overly hawkish turn will stifle growth causing recessionary tendencies to worsen.

Portfolio Managers Ed Walczak and Chul Chang highlight the future of tech companies, corporate profit margins, and supply chain reorganization.

Portfolio Manager Jin Zhang discusses China’s real estate, consumer and industrials sectors, as well as supply chain disruptions in semiconductors.

Portfolio manager Ramiz Chelat discusses regulatory risk in China, the impact of rising interest rates, and how to manage inflation.

Portfolio Manager Donny Kranson explores the impact of war and the energy crisis on consumer confidence in Europe, managing inflation and companies that are adjusting quickly to change.

CIO Matthew Benkendorf discusses supply chains, industrial activity, and consumer behavior as important drivers of economic growth, the impact of the US tightening cycle on emerging markets, and the possibility of recession at year end 2022 and into 2023.

As pressure has been building on Chinese technology stocks given growing regulatory threats, some of the key players in the Chinese internet sector are shifting to a more prudent strategy, pulling back to focus closer on the core business rather than investing in new growth areas.

GM is steeped in tradition, but there’s nothing old-fashioned about its attitude to women. After all, in 2014 the firm became the first, and so far only, car maker in the world to be run by a woman. The company has transformed into a next-gen brand, and provides investors with access to the trending brands that appeal to millennials and Generation Z with their innovative product ranges and sustainable corporate values.

What does Russia’s invasion of Ukraine portend for China and Taiwan? How do you identify quality companies amid unpredictable regulatory and political environments? How should you consider absolute risks on a country level? Cheryl Gedvila, Client Portfolio Manager, addresses these difficult questions to help investors navigate markets today.