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How ETFs Amplify the Global Financial Cycle in Emerging Markets (FED, 61 page read) Investors holding exposure to EM markets through ETFs rather than mutual funds is dramatically increasing the sensitivity of cross-border capital flows and market returns to global financial conditions. [Bullish EM volatility]
Trends Diverge as Markets Enter 2020 (Advisor Perspectives, 5 mins read) Last year, manufacturing lagged services, and profits lagged stock performance. Authors think positive growth outlook is priced and bonds are underpricing inflation. [Bearish equities and bonds]
Nothing To Fear But Nothing To Fear (Dr. Ed’s Blog, 5 mins read) Ed Yardeni is positive on US equities in the year ahead. Earnings growth is set to improve with forward revenues at a record high. Any correction due to concerns over high multiples should be used as a buying opportunity. [Bullish equities]