Q&A with QMA: X-Factor
Stock prices have continued to pull further and further away from fundamentals. Speculative growth firms, in particular, are priced at extreme levels, as investors have become overly optimistic about their future growth potential. In a new Q&A with QMA, we test for the presence of an x-factor, and determine whether or not the current pricing for growth stocks is supportable.
Greece—Near-Term Tailwinds, Medium-Term Headwinds
With a tumultuous decade behind it, Greece’s outlook presents two distinct sides. In the near term, there are numerous developments that support a positive outlook for the Greek economy as well as for holders of Greek government bonds. The economy is finally growing at a moderate pace, and the expansion will likely accelerate somewhat in 2020 on improved investment expenditures and household consumption.
A Fair Comparison Framework: Risk and Reward in Private & Public Investments
How can a CIO compare an investment with a higher expected return, but higher return uncertainty, with another investment with a lower expected return but lower risk? A natural way is to rank them based on their risk-adjusted returns. In this research paper, IAS offers a framework to help investors fairly compare private and public investment performance.
Assessing Sub-Saharan Africa’s Long-Term Growth Upside
In this paper, PGIM Fixed Income shares our constructive, medium- to long-term growth outlook for the Sub-Saharan Africa (SSA) region, recognizing that growth is a crucial component of debt sustainability. The paper assesses key longstanding features of SSA economies such as their economic dependence on commodity exports, population growth, fiscal policies, and governance. Lastly, we review how well SSA countries are prepared to tackle the challenges of climate change across the region.