THE WisdomTree BLOG
On Thursday, Japanese prime minister Shinzo Abe was re-elected as the ruling Liberal Democratic Party leader, winning by a very solid 70-30 margin against his one internal competitor. This bodes well for Japan’s economy in general, and Japanese risk assets in particular.
With the Turkish lira against the ropes and emerging markets heavily sold off this year, how can European equity risk be tamed?
I have been talking to ETF investors for more than a decade, and when I mention the numerous benefits of the structure, I often hear “I don’t need intraday liquidity, so that does not benefit me.” Well, I am here to tell you that whether or not you utilize intraday liquidity, it benefits all ETF investors.
Japan’s GDP report was a nice, positive surprise. Real GDP accelerated 1.9% in the April–June quarter, which was about half a percent better than consensus expectations. This is right around Japan’s growth potential—fast enough for corporate profits to rise but not too fast to warrant changes in monetary policy.
As pioneers of smart beta, WisdomTree continuously researches existing and new factors. In this analysis, we explain why correlations could be a key factor with persistent return premiums and information of market cycles.