SCHE News and Press, Schwab Emerging Markets Equity From 05/02/22

The stagflation scenario got a little more traction last week with the release of a negative Q1 GDP print on Thursday and hints of more inflation on Friday. April was a really rotten month with everything down but the general commodity indexes. Investing is mostly an exercise in s...

EM debt currently offers value to investors with a medium- to long-term horizon and a willingness to tolerate a period of higher volatility. EM sovereign high-yield spreads are particularly compelling, especially relative to U.S. high-yield debt. Longer term, we believe the outloo...

Between the COVID-19 pandemic and Russia's invasion of Ukraine, 2022 has been a difficult year for emerging markets. Further, it could get worse before it gets better. At the same time, EM's forward P/E of 11.6 is roughly 60% of the U.S. market's 19.6. Might that open the door of oppo...

Investors face a trifecta of worries: rate hikes, inflation and volatility. In Q1 2022, equity markets took stock of a changing economic and geopolitical landscape. Looking forward, economic and geopolitical uncertainty will likely increase. For further details see: Look...

The sanctions imposed on the Russian government and companies, along with countermeasures by Russian authorities, have caused further disruption to commodity markets and contributed to rising prices. Sanctions against Russia, along with countermeasures by Russian authorities and self-...

Russia’s President Vladimir Putin has fully miscalculated the West’s response to his invasion of Ukraine. The US Federal Reserve (Fed) looks to have underestimated the underlying price pressures that have accumulated in the US economy. The developing new world order ...

Stock markets fell in the first quarter as Russia’s invasion of Ukraine destabilized the growth outlook, amplified concerns about rising interest rates and unleashed geopolitical risks. While the conflict has created many uncertainties, we believe the impact of persistent infla...

The expected risk premium for the Global Market Index ticked slightly higher in March to an annualized 5.8% pace, fractionally above last month’s estimate. Using short-term momentum and medium-term mean-reversion market factors (defined below) to adjust the forecast trims GMI&#...

The magnitude of the war’s impact on growth and inflation will be determined by how much and for how long energy prices rise. The war, economic sanctions and the associated rise in energy costs are likely to exacerbate global shipping impediments, too, which had begun to recove...

Follow the Money is a series of brief, information-rich posts that I will publish periodically but not on a fixed schedule. After rallying for 9 of the last 11 days, the S&P 500 went from down -13% to down just -3.4%. Growth has been hit hard by the slide in tech stocks this y...