Xponance, Inc.’s Post

The Xponance team recognizes #Juneteeth as a day for introspection and reflection; a day to honor the past, celebrate the present, and contemplate further progress in the ongoing effort to foster equality and advancement in society.  

Hear our thoughts on the equity rally in China from Adam Choppin, CFA, APFI, Assistant Portfolio Manager of Multi-Manager Strategies.

In our recent paper diving deep into the asset allocations of Japanese institutional and household investors (This Time is Different in Japan, But Maybe Not for the Reasons You Think), we discussed how the demand curve for Japanese equities appears likely to have shifted higher given changes in the risk preferences of Japanese households. While this should change the expected long-term valuations on Japanese equities, fundamental active managers focus largely on the value created by individual holdings and their expected returns to shareholders. Here too, there is reason to be bullish on Japanese equities, due to market reforms and interventions over the past decade. In this note, we will recap those reforms we see as most relevant for global stock pickers, followed by insights from a selection of our high conviction boutique managers. https://lnkd.in/ezxi4nZ8

Financial conditions have improved, GDP numbers look promising, corporate earnings have been better than anticipated, labor market conditions remain strong, manufacturing has increased, and market breadth has expanded. However, this has happened alongside higher-than-expected inflation figures, a rise in consumer debt, a fall in consumer spending, and dropping levels of consumer confidence. As we enter the second quarter of the year, market participants appear to be performing a balancing act on a tightrope amidst the crosscurrents of the macroeconomic data flow. https://lnkd.in/eRZxswRQ

We are once again struck by the contradiction between careful data analysis and changing narratives regarding market direction. In our 4Q23 review, we noted that the idea of futures markets and market participants expecting 6-7 interest rate cuts by the Federal Open Market Committee (FOMC) over the course of the year made little sense absent a complete economic meltdown. As it turns out, we may end up with zero cuts by the FOMC, with the market currently pricing in only two. This rapid and significant increase in yields has been evident. While the market’s anticipation of large Fed Funds rate reductions has disappeared, many fixed income markets continue to predict smooth sailing with no storm clouds on the horizon. However, we have also noted in previous outlooks that some corners of the market (though very few) are beginning to prepare for foul weather. https://lnkd.in/esAfF--E

During this #WomensHistoryMonth our CEO Tina Byles Williams spoke with FundFire about attracting and retaining female talent in the asset management industry. Check out Tina’s insights alongside those from Laura Pollock, Kate Burke, and Christine Hurtsellers. https://lnkd.in/eHuSEE2m

Xponance is pleased to share that our Founder and CIO, Tina Byles Williams, will join Board Member James C. Rhee for a "Conversation Between Two Founders" this Thursday, March 28th, at the Howard University School of Business Auditorium. We encourage interested Howard University Students to join for what will likely be an insightful discourse in investing and leadership (see registration information in the original post).   And congratulations to James re your upcoming book release!