Equities

Question 1

What has Equity investment been like?

Answer 1

Activity levels have remained buoyant globally and investment backdrop has been pretty compelling . S&P up 15% in first half of the year. Lots of index investing moves. Private to public transactions -
Coursera closed its first day of trading at $45, about 36 percent above its IPO price. Coursera marked the first major edtech IPO of the year

Question 2

Which stock sectors have seen the greatest sponsorship from investors globally?

Answer 2

Financials & cyclical & value stocks (used to be unloved) have seen the greatest sponsorship from investors globally. Earnings figures from corporate America have broadly eclipsed Wall Street expectations. Value outperforming growth.

Question 3

What is happening in China?

Answer 3

China retooling the economy – increase in government scrutiny – sell off on Chinese stocks. Alibaba (NYSE:BABA), off 14.9%. Fundamental structural shifts about accumulation of wealth and unregulated capitalism.

Question 4

What kind of policies are ECB + BOE putting in place?

Answer 4

Loose accommodative policies (monetary + fiscal) – low interest rates - borrow more - invest in stocks

Question 5

ESG talk

Answer 5

ESG becoming more of a salient factors in shareholder investment. ESG funds beat out S&P 500 in 1st year of COVID-19. Vanguard ESG US ETF (33%) - S&P (27%)

Question 6

What do analysts believe that stock market valuations are now overly dependent on?

Answer 6

Some analysts believe stock market valuations are now overly dependent on moves by the Fed, as opposed to companies’ earnings or the economic growth outlook.

Question 7

Why may people not be so heavily invested in the idea of equities?

Answer 7

FED withdrawing stimulus early + delta variant