Money supply leads economy, but excess money moves asset markets earlier i.e.
Money Moves Markets (Liquidity Theory of Asset Prices)
Securities expected to generate high / improving economic
profitability relative to the market should outperform.
Revalidate, test conviction continuously; ensure tight capital discipline
(Behavioral Finance Theory)
Measure countries’ sensitivity to global and domestic economic cycles and liquidity conditions
Interpret liquidity trends to establish country, sector and thematic views
Liquidity analysis informs risk appetite at a country, sector and total portfolio level
Systematic analysis of macroeconomic data, liquidity, earnings, and valuations
Qualitative analysis of politics, governance, and ‘structural’ liquidity flows
Opinion list of approximately 200 stocks, covering
>65% of the benchmark
Screen and rank by region based on attractive
economic profitability
Identify companies with improving or stable return
on invested capital
Direct stock selection to countries with a favorable market environment
Focus on companies with a strong competitive advantage, leading to high economic profitability, good balance sheets with sustainable business models
Identify catalysts, risks
Select companies expected to outperform their peer group and benefit from positive liquidity trends in country of domicile
Establish long-term view for a company, industry, and country
Continually assess growth prospects, catalysts, and risks
Structural change is where the market is inefficient
A portfolio of equities in emerging
markets measured against the MSCI
Emerging Markets Net Index.
A portfolio of equities incorporating
detailed ESG research, an emphasis
on ESG factors, and a restriction
on investments in certain sectors
and securities.
A concentrated portfolio of equities in
emerging markets excluding China
measured against the MSCI Emerging
Markets ex China Net Index.
January 7, 2025 | NS Partners
Global money growth remains subdued, support from a previous monetary overhang has ended, while the stockbuilding cycle is approaching a less favourable phase for risk assets.
December 18, 2024 | NS Partners
Chinese money trends are normalising after weakness, suggesting modest economic improvement.
December 13, 2024 | NS Partners
Sectoral numbers show that recent US money growth has been focused on the household and financial sectors, with business holdings falling.
December 12, 2024 | NS Partners
Political risks spike in South Korea, testing the country’s institutions, the currency and markets. The stampede into US equities continues. Is it sustainable?
December 10, 2024 | NS Partners
Monthly UK money growth was boosted by households scrambling to dispose of assets ahead of the Budget, with a reversal likely and corporate liquidity trends worryingly weak.
December 4, 2024 | NS Partners
Eurozone services price momentum is “unsticking” as expected, supporting the forecast of sub-2% 2025 inflation.
December 4, 2024 | NS Partners
November results confirm a September low in global manufacturing PMI new orders, with money trends suggesting a further rise through spring 2025, subject to tariff distortions.
November 28, 2024 | NS Partners
Eurozone money trends are improving but remain too weak to support economic optimism, while country details highlight French stress.
November 28, 2024 | NS Partners
A pull-back in US narrow money momentum casts doubt on post-election economic optimism.
November 22, 2024 | NS Partners
The current stockbuilding cycle may be approaching its mid-point, which typically marks a shift from “risk-on” to a neutral or negative market environment.
November 16, 2024 | NS Partners
A look at the potential impact of President Trump’s policies on emerging markets, the risks of rising trade tensions with China and the resilience of China’s domestic market.
November 14, 2024 | NS Partners
Japanese money trends remain ominously weak, suggesting poor economic / market prospects and a return of inflation to unacceptably low levels.
November 8, 2024 | NS Partners
Flow and stock measures of “excess” money cast doubt on claims that the liquidity backdrop for markets is unusually favourable.
October 30, 2024 | NS Partners
Money growth is recovering disappointingly slowly in Europe and has weakened in Japan, while a recent US pick-up may fade post election.
October 23, 2024 | NS Partners
The MPC’s slowness to cut rates risks aggravating a recent loss of economic momentum and prolonging an inflation undershoot.
For additional information on NS Partners Ltd, please contact:
Senior Vice President,
Head of Institutional Sales, Canada
Senior Vice President,
Co-Head of Institutional Sales, USA,
Senior Vice President,
Co-Head of Institutional Sales, USA
Chief Compliance Officer
& Head of Client Service
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