Two engines that could power earnings growth

After moving sideways for the past two years, U.S. corporate earnings may be poised for reacceleration in 2014. While the growth is likely to be modest, we believe investors may be overlooking the potential for improvement. There appears to be … Continue reading »

Brazil shines for some luxury goods makers

It can be challenging for a retail manufacturer to break into foreign markets, particularly when draconian import duties lead to price inflation and frustrate the growth of the retailer’s brand. Penetrating new geographies can be especially challenging for the luxury … Continue reading »

Chinese tourists become big spenders

Tourists from China spent more money abroad in 2012 than tourists from any other country. At US$102 billion, Chinese international tourism eclipsed — by 20% — the total amount spent by either German or U.S. tourists. Only seven years earlier, … Continue reading »

Investing for growth even when businesses don’t

Despite the recovering economy, capital spending by U.S. businesses has yet to pick up in a meaningful way. Businesses still have record amounts of cash on their balance sheets, but rather than investing for future growth, many are choosing to … Continue reading »

A transitioning health-care sector offers value

Despite recent outperformance in the sector, we believe health-care stocks remain attractively valued. Health-care price-earnings multiples have recently moved closer to those of the broader market, but are still considerably lower than their historical peaks. The sector is not without … Continue reading »

This sector has a stronger pulse than the market

Investors should take notice of positive developments in the health-care sector. The market already has. Stable earnings and solid fundamentals have led health care — a typically defensive sector — to outperform in a rallying U.S. equity market. Health-care companies … Continue reading »

European brands court Chinese consumers

Since the mid 2000s, the rise of the Chinese consumer has transformed global luxury markets, opening new horizons for European companies. The challenge is to harness the buying power of China’s rapidly growing upper-middle and more affluent classes. Continue reading »