As China enters the Year of the Rat this Saturday (25 January), Jasmine Kang, Portfolio Manager at Comgest, the independent, international asset management group focused on quality growth investing, believes that China's growth has become more sustainable but that high-quality companies
are still rare...
There are several reasons to be optimistic about Japanese equities in 2020.
First, consider valuations. Whether on price-to-book or price-to-earnings, Japanese stocks are among the cheapest in all developed equity markets. Take the price-to-book ratio of the MSCI Japan.
We are threatened with excitement in 2020, from civil unrest and
ongoing trade wars to political upheaval and market volatility. We
believe global economic expansion will continue at a slower, less
even pace across regions.
When looking ahead to next year it is easy to focus on the many uncertainties around the
world, but we prefer to focus on what we consider a certainty: the continued, rapid digitalisation
of the financial services industry. We have already seen huge disruption on this front in the last
five to ten years and we expect this to continue creating new investment opportunities through
the next decade and beyond.
There's growing evidence that private equity markets are beginning to overheat after several high-profile IPO flops. Investors in stocks should pay attention because private funding troubles are also a very public market affair.