The Role of Market Capitalization in Global Equity Portfolios
Introduction to Market Capitalization Definition of Market Capitalization: Commonly called Market Cap, refers to the market value of a company’s equity. Market Capitalization is the product of the current share price by the number of shares outstanding. Market cap fluctuates with daily price movements in the stock price. The methodology to calculate market cap for […]
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Performance Review: How to Evaluate Your Global Equity Investments
Introduction to Portfolio Performance Evaluation Importance of Regular Reviews: Managing global equity investments requires regular, annual portfolio performance evaluations (reviews), which play a crucial role in ensuring achievement of investor objectives. The frequency of these reviews can occur more often if needed as a change in circumstance or investment objectives occur. Components of a Portfolio […]
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Market Concentration Risk – Are We in a Bubble?
During 2023 the major U.S. and Global Equities indices made strong advances. The Nasdaq composite index rose 43.1%, the QQQ, as a proxy for the Nasdaq 100, earned 57.4% and the S&P 500 earned returns of 23.8% for the year ended 12/29/2023. Evaluating the returns for the indices since the beginning of 2023 and including […]
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ARCHER-DANIELS-MIDLAND (ADM), A Sample Research Analysis
Company Profile Archer-Daniels Midland is an industry leading buyer, processor and trader of oil seeds, corn, wheat, and other agricultural commodities. The firm is a distributor of crops from farmers to food, feed and energy buyers. ADM also transports, stores, and/or processes the crops around the globe. Over recent years, ADM has grown the nutrition […]
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Challenges in Transitioning To An Electric Vehicle (EV) World
Introduction Electric Vehicle (EV) sales began to slow in the US during the second half of 2023. As a result, General Motors and Ford announced delays in planned investment for Electric Vehicle and Battery production capacity. The reduced production does not bode well for the adoption of the rule, proposed in May 2023, by the […]
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Interest Rate Policy and Stock Market Outlook 2024
Interest Rate Policy The Federal Reserve completed one of the most aggressive tightening of monetary policy in July of this year. The Federal Reserve adjust money policy through Interest Rate adjustments. Therefore, we thought we would analyze prior cycles to assist us in our outlook for 2024. Most economists currently are predicting a recession in […]
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Insights on Inflation and Monetary Policy
Introduction Hemispheres Investment Management closely monitors inflation and monetary policy in the U.S. as well as for all of the countries that influence or holdings in the Global Equities Strategy. The Philadelphia Federal Reserve surveys 37 prominent economists and compiles a report known as the Survey of Professional Forecasters. The survey helps the Federal Open […]
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Impact of Monetary Policy Tightening on Banks and the Economy
Introduction Countries around the globe are adjusting monetary policy to compensate for decade high levels of inflation. This article will focus on US Federal Reserve policy which strongly influences both Hemispheres domestic as well as global equities investment strategies. The Federal Reserve Monetary Policy One of the tools the Federal Reserve utilizes in adjusting monetary […]
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Federal Reserve Monetary Policy Adjustment
Introduction Hemispheres Investment Management closely monitors economic and monetary policy adjustments and conditions. We evaluate macroeconomic conditions in the both in the U.S and throughout the world for our flagship product, Global Equities. Federal Reserve Policy Change and Economic Data On July 26th, 2023, the Federal Reserve raised interest rates by 25 basis points. The […]
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Economic and Political Challenges for the Market
Introduction Despite economic and political challenges year to date, both in the U.S. and Global Equity market returns have been positive. Market Concentration In prior articles, we wrote about multiple economic and political challenges that led to volatile markets in the first half of 2023. Yet despite the volatility, market returns have been robust thus […]
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