Technology and Coronavirus: The Digitalization of the Economy Gathers Steam
The coronavirus pandemic and governmental responses to mitigate its spread have heightened economic uncertainty and market volatility. Pivotal moments like the current crisis can push enterprises and consumers to embrace change much faster than they would under normal circumstances. Near-term turbulence aside, this should accelerate the digitalization of the economy and the powerful secular trends that we expect to create long-term value in the technology sector Alan Tu, Portfolio Manager, Global Technology Equity Strategy, shares the tech team’s latest insights and his views on the long-term opportunities created by recent market dislocations. Alan discusses the technology landscape of today and tomorrow, nuanced insights gleaned from our global research platform, and where he’s finding compelling risk/reward profiles in his investment universe.
RecordedMay 7 202049 mins
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The first half of 2021 has very much felt like the “in between” of a COVID--dominated world and a post‑COVID‑19 one, and it’s something we have been speaking about with clients for some time. It’s an extremely complex environment for investors to navigate, with markets characterised by volatility and rotation. As we move through and beyond this in‑between phase, however, it’s critical for investors to imagine which companies will evolve, or re-emerge, as improving economic return “winners”.
Please join David Eiswert, Portfolio Manager, Global Focused Growth Equity Strategy, and Laurence Taylor, Portfolio Specialist, on 24th June, as they share their insights on the outlook for global equity markets and how the team is positioning client portfolios to take advantage of these dynamics. At the heart of the conversation will be a forward-looking discussion on the global economy, inflation, recovery, COVID management and ultimately, the sustainability of the equity cycle.
Japan markets experienced something of a turnaround in the early part of 2021 as cheap valuations of companies that had been severely affected by the pandemic started attracting interest from investors, while fears of a pick-up in stimulus-led inflation further helped drive the large rally in value and low-quality stocks. While a global recovery should provide a cyclical tailwind for its equity markets, Japan continues to face challenges overcoming the virus.
Please join Archibald Ciganer, portfolio manager, and Dan Hurley, portfolio specialist, on 14 June at 10:00am BST / 11:00am CET, when they will discuss the current market environment and outlook for investors in Japan equities. They’ll also review recent performance and current positioning of our Japan Equity Strategy, and specifically how Archie’s been managing his quality-growth bias portfolio through a value-led, cyclical rally.
Moderator: Caleb Fritz Panelists: John Linehan, Sebastien Mallet, and Sebastien Page
Value stocks have outperformed growth stocks since the fourth quarter of 2020, as economic activity resumed amid the rollout of vaccines targeting the novel coronavirus. After a decade-plus of dominance for growth equities, many institutional investors were structurally underweight value, causing some to miss the recent rally. With the tactical “reopening” trade potentially behind us, we believe investors should consider the merits of a long-term allocation to value stocks to potentially benefit from improved returns, enhanced diversification, and exposure to future changes in style leadership. Some of our firm’s most experienced investors share key fundamental and asset allocation considerations on the recent style rotation and what they believe may come next.
Join director of credit research Justin Gerbereux, on 2 June at 12:00 BST / 13:00 CET, for an overview of the global credit opportunity for the second half of 2021, discussing relative value across high yield, investment grade and emerging markets credit.
We will then turn to focus on Asia credit, which we continue to see as a compelling opportunity. Director of emerging markets credit research Carolyn Chu will join us from Hong Kong to discuss this asset class that, while still viewed by some investors as ‘niche’, is increasingly becoming a force to be reckoned with.
We think this live discussion will offer plenty of practical insights for investors as they think about their asset allocation in the coming months. Please join us for Q&A afterwards.
Moderator: Jan Eggertsen, head of distribution for the Nordic region
Sustained hopes for a global economic recovery in a COVID-off environment, expectations for higher inflation and pockets of extreme asset valuation levels have prompted some investors to call a market leadership rotation from growth to value stocks. It is always hard to determine exactly what causes a cycle to flip, but given the current valuation disparities, we do believe cyclical areas of the market have room to run in the short to intermediate term.
Please join Eric Papesh, portfolio specialist, on 19 May at 10:00am BST / 11:00am CET, as he assesses these dynamics and the implications for US equity investors. Specifically, he’ll discuss the outlook for our US Large Cap Value Equity Strategy, reviewing recent performance and current positioning.
Laurence Taylor, Portfolio Specialist, reviews the latest performance and positioning of the T. Rowe Price Global Focused Growth Equity Strategy, as well as considering the implications of the current market conditions.
Join Yoram Lustig - Head of Multi-Asset Solutions EMEA & LATAM, on 29 April at 10:00am BST / 11:00am CET, as he discusses key asset allocation themes and where he sees opportunities and risks in the current environment.
What next as focus shifts from infection rates to inflation rates? Should investors brace for higher inflation? Yoram will provide his views on the main themes we see driving global markets today, and the implications for asset allocators.
At T. Rowe Price we strive to provide clients with valuable insights to help inform their decision-making, so we are pleased to offer CPD qualification (accredited by CISI) for this webinar.
You will also be able to put your questions directly to Yoram during the session.
US equity markets have already experienced several twists and turns since the start of the year. Hopes over stimulus packages, vaccines and a sustained economic recovery have seen major indices hit record highs. Those same hopes, however, have caused inflation fears to resurface and led to bouts of market uncertainty, particularly around high growth tech stocks.
Please join Julian Cook, portfolio specialist, on 31 March at 10:00am BST / 11:00am CET, as he assesses the current market environment and the implications for US equity investors. Specifically, he’ll discuss the outlook for our US Large Cap Growth Equity Strategy, reviewing recent performance and current positioning.
Much has changed since the Covid-19 shock hit emerging market bond prices this time last year. Today, we think EM assets have a lot going for them, but there are some potential tripwires for investors to watch out for. Sovereign bond valuations look interesting, particularly in the local currency space.
Join portfolio manager Andrew Keirle and sovereign debt analyst Chris Kushlis, on 23 March at 10:00am GMT / 11:00am CET, for a discussion of key trends likely to drive emerging markets in the coming months, and the implications for government bond investors in both hard and local currency markets. Moderating the discussion will be portfolio specialist Michael Ganske.
To join this live event and participate in our Q&A please register below.
We believe EM equities should benefit from significant post-COVID tailwinds this year: pent-up demand and its linkage to global trade, attractive relative valuations, increased China demand, and favourable currency trends, to name a few. Yet many investors remain underweight the asset class and have narrow exposure that may miss forgotten pockets of opportunity, which may out perform as social and economic behaviour normalise.
Portfolio Managers Ernest Yeung and Haider Ali explained how they are finding opportunities by digging deeper into these dynamic markets. In particular, they discussed:
• Extreme divergence of EM value and growth equities
• Impact of a weaker US dollar on EM
• Resilience of EM economies and whether further fiscal stimulus is needed
• Relative valuations and pockets where stocks are potentially mispriced
• Improving company fundamentals that many investors may be missing
• Outlook for US-China trade relations
Equity markets delivered extraordinary returns in 2020, but the first quarter of 2021 will certainly test investors given the return of uneven and contradictory news flow. Please join Laurence Taylor, portfolio specialist, on 8 February at 10:00am GMT / 11:00am CET, as he assesses the current market environment and the implications for global investors.
He’ll discuss our Global Focused Growth Equity and Global Growth Equity strategies, their recent performance and how they are currently positioned to capture the opportunities and mitigate the risks that lie ahead.
Not since the Global Financial Crisis have corporate bond investors faced such a rollercoaster of selloffs and rallies, not to mention a wave of ‘fallen angels’ and credit defaults. As we approach the end of the year, what conclusions can we draw?
Join Director of Credit Research Justin Gerbereux for an outlook on corporate bond market fundamentals and valuations in the months ahead. He will be joined by a panel of our top research analysts from high yield, investment grade and emerging markets credit, who will discuss their top sector picks and what they will be watching in 2021.
Like all of Justin’s webinars, this promises to be a well structured and fast-paced event with plenty of practical application for investors as they think about their asset allocation in the coming year.
Please register below to join this live event which will also incorporate a Q&A session where you can put your questions directly to the team.
2020 has been a year like no other. A global health crisis, as yet without an end in sight, that has transformed the world and is accelerating change across societies. Governments and central banks have announced massive funding and stimulus packages as economies plunged into recession. Meanwhile geopolitical tensions have been escalating, in particular between the US and China, and a divisive US Presidential election lies just around the corner. These events are likely to have far reaching and long lasting impact for investors.
To help navigate through this complexity and uncertainty, we’re bringing together a panel of experts from our investment team to share their economic, market and asset allocation perspectives. During a live and interactive debate, they will tackle the big issues for investors, the investment implications and how they are incorporating them into their outlook and decision-making.
Please register below to join this live event which will also incorporate a Q&A session where you can put your questions directly to Yoram Lustig, Head of Multi-Asset Solutions, EMEA; Nikolaj Schmidt, Chief International Economist; and Julian Cook, Portfolio Specialist, US Equities.
Shinzo Abe’s resignation as Japan’s prime minister marks a critical juncture for investors. His “Abenomics” program of economic policies has delivered much needed structural reform, creating opportunity and encouraging investment. Corporate Japan has defied the sceptics, transforming its business practices and governance standards from the conservative, shareholder un-friendly norms of its past.
In this webinar, Archie Ciganer, Portfolio Manager Japan Equities, will consider what the future holds for Japan and what that might mean for Japanese equities. At a time when global markets face significant and unprecedented challenges, will Abe’s recent resignation bring an end to this period of political stability, constructive economic and social reform and enhanced international presence? Or will his successor sustain the momentum of positive change?
The discussion will incorporate the current market outlook, the opportunities we’re identifying across the universe, and where Japanese equities can go from here.
You will also have the opportunity to pose your questions to Archie during the live event.
Based in Tokyo and fluent in Japanese, Archie has over 20 years’ investment experience and is currently responsible for managing over USD 4 billion in Japanese equities at T. Rowe Price.
Over the past few years, US (and global) equity indices have become increasingly skewed towards a small handful of big names synonymous with growth and technology.
2020 and the coronavirus pandemic have only seen those trends accelerate to reach unprecedented levels. The “big 5” of Microsoft, Apple, Amazon, Alphabet (Google) and Facebook now account for over 20% of the S&P 500 index, with Apple recently becoming the first US company to reach US$2 trillion market cap. For growth investors specifically, the concentration is even more acute with the same names making up more than one third (almost 40%) of the Russell 1000 Growth Index. In addition, the recent environment has underpinned a number of emerging growth companies whose extreme valuations have further driven market leadership.
Such narrow leadership raises many concerns for investors. How far can these stocks go? How can investors manage the diversification risks? And with all the focus on so few stocks, are other opportunities being overlooked?
In this webinar, Taymour Tamaddon, Portfolio Manager, US Large-Cap Growth Equity Strategy, will assess the outlook for US growth stocks and his approach in this environment. And with an eye on the upcoming US election, he’ll share the team’s insights on attractive areas of the market outside of the big 5, where they see potential for durable long term outperformance.
With US$806bn invested in US equities and more than 300 research analysts globally*, T. Rowe Price can draw on over 80 years of experience investing in US companies for our clients.
Please register below to join this live event which will also incorporate a Q&A session where you can put your questions directly to Taymour.
The specific securities identified and described are for informational purposes only and do not represent recommendations.
*As at 30 June 2020. US equities AUM includes assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates.
Maria Elena Drew, Donna Anderson, Hari Balkrishna and Laurence Taylor
The pandemic has highlighted for global governments the need to take action and to find solutions to these societal discrepancies that are market friendly but at the same time do not exacerbate income and asset inequality further.
There does seem to be a growing understanding among governments that investing in a more sustainable, forward-looking way is ultimately mutually beneficial for both the environment and society. “Green” or renewable investing is not only key in mitigating climate change, it is also a way to create new jobs.
The events of 2020, including the global coronavirus pandemic, have provided another tough test for emerging markets (EM). As we analyse the prospects for stocks individually and collectively, we are focused on the resilience of businesses, and which companies are poised to move forward in a strong position.
Gonzalo Pángaro, Portfolio Manager, Emerging Markets Equity Strategy, and Malik Asif, Associate Portfolio Manager, answer your questions and share their thoughts on where the key risks and opportunities lie for EM investors. This session includes:
•A discussion of the current global EM landscape and outlook
•Our views on the countries and sectors key to EM's recovery
•Analyst insights from our meetings with company management teams
•The drivers behind the strategy's performance year-to-date
•How the portfolio is positioned at the midpoint of 2020
In this webinar, Julian Cook and Eric Papesh, Portfolio Specialists in our US Equity Division, offered their perspectives and a bottom-up view on some of the questions at the forefront of investors' minds. As one of the largest active managers of US equities, we can bring a consolidated view from (virtual) boardrooms across the US. Topics covered included the coronavirus, whether the current divergence between the economy and stockmarkets is sustainable, trade wars and the US elections, growth vs value, and more.