BCA Research’s Emerging Market Strategy service recommends overweighting Chinese A-shares within an EM equity universe. The risk-reward profile for the A-share market has improved because of the following:…
Executive Summary EM Equity Sentiment Is Not Very Depressed Yet Chinese A-shares have become oversold, and authorities are determined to stabilize the market. Yet, downshifting corporate profits and a selloff in global…
Since last October, Indian stocks have been in a trading range relative to their EM counterparts. Similarly, they have not fallen much so far in absolute terms – even though foreign investors have exited this market en…
Executive Summary Investors Think The Fed Will Not Be Able To Raise Rates Much Above 2% The neutral rate of interest is 3%-to-4% in the United States. This is substantially higher than the market estimate of around 2%. It…
Executive Summary Higher Prices Expected Global oil supply will move lower for a few months, until shipping can be re-routed and re-priced in response to sanctions against Russian oil producers and refiners. In the…
Executive Summary Profit Margins Are Headed Lower; So Are Equity Multiples The post pandemic profit recovery in India was driven by a one-off revival of demand from very depressed levels, which led to a spike in profit…
Global equity markets enjoyed a healthy rebound on Wednesday. Asian equities led the move higher as pledges from Beijing to support the economy and capital markets improved sentiment among investors. Hong Kong’s Hang Seng…
BCA Research’s China Investment Strategy service concludes that China faces substantial challenges in expanding its economy. China set an ambitious economic growth target of 5.5% for the year, relying on fiscal stimulus…
Dear Client, Next week, in lieu of our regular weekly report, I will be hosting two webcasts where I will discuss our view on China’s economy and financial markets. In particular, I will share our view on the announced economic…