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Epoch Investment Partners

The Capital Reinvestment Story

What is the purpose of a firm? The generally accepted answer is something along the lines of “maximize the value of the business for its owners,” which in the case of a publicly traded company is the stockholders. But what does that answer really mean in practice?

AI is the New Macro Part II: An AI Powered Productivity Boom

Part II of our series examines productivity, which has been the primary determinant of our prosperity and welfare. In turn, since at least Gutenberg, technologies like AI have been the critical driver of productivity.

AI is the New Macro: Implications for the Labor Market

Generative AI is destined to be the key driver of equity markets over the next decade or so. Part I of a four part series identifies four key areas that could be impacted – labor, productivity, sector concentration and free cash flow generation.

This is why we can’t have nice things

Of late, people are blaming a variety of economic ills on an unlikely villain: the desire of investors to earn good returns on capital. But, no industry can be expected to survive if it is not creating value for its investors.

China’s “Common Prosperity”: What Does it Mean for Investors?

In 2024 the SEC will begin delisting Chinese companies that haven’t opened up their audits to U.S. oversight. Beijing has prohibited cooperation over fears that state secrets would be leaked. As a result, equity market decoupling is destined to accelerate over the next two years.

The pandemic accelerant: turbo-charging the digital economy

New business formation has soared during the pandemic, even though it typically plummets during recessions. Similarly, we have witnessed a record number of unicorn births, especially in fintech and biotech.

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Retirement

Uncomfortable truths: The real cost of living in retirement

How useful are the retirement savings and spending targets put out by various groups such as ASFA? Not very, and it's reducing the ability of ordinary retirees to fully understand their retirement income options.

Shares

On the virtue of owning wonderful businesses like CBA

The US market has pummelled Australia's over the past 16 years and for good reason: it has some incredible businesses. Australia does too, but if you want to enjoy US-type returns, you need to know where to look.

Investment strategies

Why bank hybrids are being priced at a premium

As long as the banks have no desire to pay up for term deposit funding - which looks likely for a while yet - investors will continue to pay a premium for the higher yielding, but riskier hybrid instrument.

Investment strategies

The Magnificent Seven's dominance poses ever-growing risks

The rise of the Magnificent Seven and their large weighting in US indices has led to debate about concentration risk in markets. Whatever your view, the crowding into these stocks poses several challenges for global investors.

Strategy

Wealth is more than a number

Money can bolster our joy in real ways. However, if we relentlessly chase wealth at the expense of other facets of well-being, history and science both teach us that it will lead to a hollowing out of life.

The copper bull market may have years to run

The copper market is barrelling towards a significant deficit and price surge over the next few decades that investors should not discount when looking at the potential for artificial intelligence and renewable energy.

Property

Global REITs are on sale

Global REITs have been out of favour for some time. While office remains a concern, the rest of the sector is in good shape and offers compelling value, with many REITs trading below underlying asset replacement costs.

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