Page 7 - Beyond Basic Beta News Today

Commodity indexes have maintained good gains all year in the face of rising interest rates and the stronger U.S. dollar.

Fiscal considerations will be playing a greater role in EM central banks’ decisions going forward – giving more room to slow the pace of hikes or leading to more tightening.

In the current environment, CLOs may provide an attractive return opportunity among credit assets, with demand remaining robust.

Inflation persistence and hawkish Fed remarks pushed equities into bear market territory. Despite this, Oil & Gas stock weights increased in the BUZZ Index as sentiment in the sector held steady.

Upsides prevail in emerging markets as multiple headwinds show signs of abating. We believe the global valuation collapse has opened up tremendous opportunities in operationally strong companies.

We believe fallen angels may look attractive over the next year with the carry now offsetting a 1.43% rise in yield from rates or spreads.

As signs of a global economic slowdown became increasingly clear, investors downgraded demand expectations for most commodities.

Powerful moats can be built on switching costs, which lock customers into a company’s unique ecosystem and make it expensive to move.

Although not always easy to quantify, intangible assets are one of the primary sources of strong competitive advantages for businesses and a key source of economic moats.

With small– and mid–cap stock valuations at 20–year lows relative to large caps, now may be a compelling time for investors to consider these stocks.