On the Minds of Investors

Net zero: What opportunities arise from a carbon neutral world?

The most successful companies of the past decade are not necessarily going to be the leaders of the next decade. Sustainability is likely to be a decade-defining theme, creating opportunities for the next generation of innovative companies.

Net zero: How can policymakers drive net zero carbon emissions?

Policymakers will be the key drivers of efforts to mitigate climate change, and given the urgency and sheer scope of the challenge, they will need to pull on all of the levers available.

Money Moves: How should investors be positioned within International equities, and where have dollars actually gone?

With future domestic market returns constrained by heightened valuations, other opportunities must be sought out: international equities remain one of the best.

Net zero: How do we reach net zero carbon emissions?

Achieving net zero carbon emissions will be no easy feat. It will require major innovation and investment. Therefore, it presents incredibly lucrative opportunities for the companies and countries that succeed.

Should “do-it-yourselfers” invest at all-time highs?

While we cannot time the market, fundamentals remain supportive: monetary policy should remain accommodative over the next couple of years, further fiscal stimulus is on the horizon and corporate earnings should rebound strongly as the pandemic recedes, all providing support for equities over the medium-term. With this in mind, investors saving for retirement should be positioned more aggressive in their allocations.

How can companies boost return on equity?

In general, there are three levers that a corporation can pull to boost return on equity – margins can expand, assets can be used more efficiently, or more leverage can be taken on.

Are we in a commodity super-cycle?

Recent U.S. inflation data showed that energy prices rose a substantial 5% for the month of March. Some of this improvement was clearly driven by base effects, with the early days of the pandemic putting substantial downward pressure on energy prices, making the comparisons very easy; but a good deal is also attributable to true changes in underlying supply and demand. At the same time, lumber prices have hit all-time highs and copper prices are near peaks last reached a decade ago. This upward price pressure for a number of different commodities may have investors wondering: are we in a commodity super-cycle?

What should investors expect from China’s economy this year?

In 2020, China engineered a V-shaped recovery from the pandemic, the only major economy to do so, with its real GDP level regaining its lost ground by the end of 2Q20. China’s expansion continues this year, but with a focus on the quality over quantity of growth.

How green is Biden’s infrastructure plan?

On April 22, President Biden will host 40 world leaders to discuss climate efforts at the Leaders Summit on Climate. Although the U.S.’s commitment to battling climate change has wavered in recent years, the new administration’s infrastructure proposal, the American Jobs Plan, bears a distinct shade of green.

How can I improve my expected rate of return?

2020 was an incredible year in the capital markets. However, in the wake of very strong performance for both stocks and bonds over the past 12-months, as well as the past decade, most traditional assets are looking expensive.