Conversation with Joseph V. Amato
"We’re deeply committed to our investment culture—an environment that encourages original and independent thinking"
~ Joseph V. Amato, President and Chief Investment Officer—Equities
Equities
CIO WEEKLY PERSPECTIVES
The Asset Allocation Facts Have Changed
Why we think this year’s dramatic rise in bond yields, together with recent signs that inflation may have peaked, demands a radical re-think of asset allocation.
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Equities
NB Blog
Thoughts from our equity investment professionals on the evolving state of global markets and the macro economy.
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Equities
Equity Market Outlook 4Q2022
Economic and Market Review: Key Considerations for Equity Investors
We put out a cautious Equity Market Outlook three months ago, and after a quarter of worsening economic data and inflation trends we are now even more focused on low beta and high earnings quality.
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Equities
PLATFORM OVERVIEW
Fundamental, quantitative and alternative offerings spanning market capitalizations and regions provide opportunity for bespoke solutions to meet unique client needs.
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OUR PHILOSOPHY
Alpha generation is the priority for our specialist investment teams, which leverage deep firm resources and expertise, including global research, data science and ESG capabilities
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Highly experienced, sector-focused research analysts develop company ratings for the firm’s portfolio management teams, partnering in the rigorous exchange of ideas to drive differentiated investment views
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OUR PLATFORM
$112bn
of assets under management across an integrated global platform comprised of 272 investment professionals, including 122 research analysts
U.S. LARGE & ALL CAP
U.S. SMALL & MID CAP
GLOBAL
EMERGING MARKETS
THEMATIC
REAL ESTATE & INCOME
QUANTITATIVE
ALTERNATIVES
80+ YEARS OF LEADERSHIP AND INNOVATION IN EQUITY INVESTING, SINCE 1939
ESG, SUSTAINABLE & IMPACT1
Material environmental, social and governance factors are important drivers of long-term investment returns from both an opportunity and a risk-mitigation perspective
Innovative Strategies
Range of ESG-integrated investment strategies across public and private markets, as well as outcomes-focused solutions such as impact, climate transition, net zero, SDG engagement and avoidance-based.
Proprietary Views
7,000+ systematically developed NB ESG Quotient™ ratings for companies based on financially material factors
NB Votes
61 proxy votes published in advance and voted on behalf of our clients, an important component of creating shareholder value
ACTIVE ENGAGEMENT2
We believe close engagement with management on ESG issues has the potential to create economic value while reducing risk
3,162
engagements with equity issuers
26%
on environmental issues
67%
on social issues
60%
on governance issues
Thoughts from our equity investment professionals on the evolving state of global markets and the macro economy.
INSIGHTS
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Hardening Borders: Opportunities in Security, Health and Trade
Seeking the potential beneficiaries of a new age of deglobalization and insecurity.
Solving for 2023: Back to the "Old Normal"
Our senior investment leaders discuss their market and investment themes for the coming year.
Is This ‘Nightmare on Wall Street’ Coming to an End?
Do corporate earnings disappointments signal a weaker economy and easing inflation pressures, which could end this scary market—or are there more twists to come?
Tighter Conditions Begin to Squeeze the Economy
As the economy slows, an epic climb in short-dated rates and bond yields appears to have shocked investors into accepting the prospect of stickier inflation, but they still seem reluctant to price for substantially lower earnings.
Economic and Market Review: Key Considerations for Equity Investors
We put out a cautious Equity Market Outlook three months ago, and after a quarter of worsening economic data and inflation trends we are now even more focused on low beta and high earnings quality.
Policy Excesses and Market Discipline
We are seeing bond investors standing up for themselves against policymakers, and while equity investors are experiencing pain from this struggle, the end result may be a more sustainable, fundamentals-based market.
The Uncertainty May Be Worse Than the Slowdown
We do think the onset of recession is a time to tread carefully, but it could also be a time of opportunity for equity investors.
How the Space Economy Is Achieving Liftoff
(17:04) As we take off further into the Space Age, we explore the growth potential and opportunity set within this quickly evolving sector.
Japan’s New Horizon in Small Caps
We believe smaller companies are poised to shine brightly in the “land of the rising sun.”
China: Suspended Animation
The run-up to China’s leadership meetings this fall is delaying substantial policy changes, in our view creating opportunities in advance of potential economic improvement next year.
Value, Growth and the True Exposures in Your Portfolio
If your portfolio has fallen more heavily than you anticipated this year, it may be because it has become biased to growth stocks: a full analysis could help restore the balance—and the exposure to a more disciplined style of value investing—you intended.
Recession Semantics
Whether the U.S. is actually in a recession is debatable, but high inflation will affect companies both positively and negatively.
Forgo FOMO: Growth Investing for the Long Term
(12:08) As investors grapple with what the options are in today’s market, we look to growth stocks, which some may consider to be too risky right now, but we uncover how we believe that might not actually be the case…
Economic and Market Review: Key Considerations for Equity Investors
We see increasing likelihood of a recession, but even if we avoid one, we think the coming months are going to feel like a recession as the decline in stock market valuations in the first half of the year are likely followed by a decline in corporate earnings in the second half.
Earnings at a Crossroads
The guidance in this season’s earnings reports could start to tell us how far earnings are likely to decline and how much is already priced in.
Into the Inflationary Slowdown
As inflation persists and recession risks rise, our Asset Allocation Committee sees more yield potential in fixed income and favors commodities for ongoing inflation exposure, but remains cautious in equities.
The Mission Toward Carbon Transition
(17:11) What role does carbon play across infrastructure and are companies implementing changes across their operations as a result?
The Space Economy Achieves Lift-Off
Space-based industry is much more down-to-earth than you might think—and every day it touches more and more of our lives.
Descending From Extremes Is a Rocky Process
To understand the current volatility, it helps to get reacquainted with just how out of whack things were coming into 2022—in terms of both magnitude and timing.
Staying On Theme
When inflation, interest rates and global economic uncertainty are rising, cash today can seem more urgent than exposure to the markets of tomorrow—but could that mean investors risk missing out on the potential of thematic strategies?
Are We There Yet?
Regardless of whether we get a hard or soft landing, we likely face a steep approach to the runway in trying to “land this plane.” The question is, how well consumers and companies absorb the slowdown, and whether sentiment is already bearish enough to create long-term value.
Japan: Land of the Rising Prices?
Japan looks set to emerge from 30 years of near-zero inflation in 2022—but are its companies able to absorb higher costs, or even re-learn the art of passing price hikes on to their customers?
Alternative Data: Workforce Recovery and the Great Resignation
More displaced workers seem ready to come back into the labor force, but employers may need to watch their highly compensated “stayers.”
Electrification: Paving the Road to Emissions Reduction
As investors focused on long-term sustainability, we have long focused on emissions, energy efficiency as well as long-term opportunities and threats in business models as it relates to their sustainability and competitiveness over the long run.
Why Passive ESG Fails to Deliver
There’s no substitute for nuanced analysis and judgment in ESG investing.
Cautious, Not Bearish
Investors may want to position for persistent volatility as growth begins to slow, but we still believe earnings growth supports the case for equities.
Regime Change
While we do not anticipate a recession over the next 12 months, the prospect of slowing growth and stubborn inflation has led us to downgrade our view on equities, and prepare for a new regime in which real assets could generally perform better than financial assets such as stocks and bonds.
Economic and Market Review: Key Considerations for Equity Investors
We believe the conflict in Ukraine may turn out to be less critical for equity markets than the upcoming turn we anticipate in the economic growth cycle.
REITs as a Hedge Against Inflation
Real estate investment trusts across a number of sectors could show strength in 2022, driven by inflation and secular trends.
Virtual Worlds, Real Opportunities
Could the metaverse be a revolution in every aspect of our lives, ridiculous hype that will lead nowhere, or the natural progression of a world we’ve been living in for decades?
Large Cap Value, Inflation Fighter
Large-cap value stocks have characteristics that could make them compelling in the current environment and beyond.
From Buying the Dips to Fading the Rallies
Equity markets are higher than they were on the eve of the invasion of Ukraine, but here’s why we think there is more volatility, and potentially more downside to come.
War, Inflation, and Markets
Investors appear to be refocusing on pre-war concerns about economic fundamentals—but finding that this horrific conflict has exacerbated them.
Value Can Potentially Outperform Even if Growth Slows
We believe value is likely to outperform growth over the coming years—and threats to economic growth from inflation, rate hikes and geopolitical risks do not change our view.
The Supply-Led Inflation Challenge
The Fed could end up playing checkers while the economy is playing chess—with potentially worldwide consequences.
The Weakest Links in the Global Supply Chain: Part III
(17:30) In this final chapter of the supply chain series, we identify some of the key risks and opportunities across the technology sector as the global semiconductor shortages further impact the greater supply chain crisis.
The Weakest Links in the Global Supply Chain: Part II
(19:53) As we continue our conversations around the current global supply chain crisis, we evaluate what companies with production overseas are doing about meeting consumer demands and more.
Solving for a Year of Inflections
The Solving for 2022 delegates voted on what they think will be this year’s best-performing investment category—and here’s why we think they are right.
Economic and Market Review: Key Considerations for Equity Investors
We believe positive fundamentals are likely to outweigh pandemic, valuation and slowdown concerns in the first half of 2022.
The Weakest Links in the Global Supply Chain: Part I
(15:38) With store shelves looking emptier and shipments getting delayed, we explore what is happening in the global supply chain and what companies are doing about it.
2022: A Year of Major Inflection Points
These five big transitions are likely to make 2022 a choppy and challenging year for equity investors—and the end of the coronavirus pandemic doesn’t even make the cut.
Hike Rates and Carry On
A positive economic outlook makes the case for holding risky assets through 2022, in our view, but higher rates are likely to mean higher volatility: we therefore favor a focus on income or “carry” from risky assets, alongside strategies with the potential to withstand price volatility.
Outlook 2022
The heads of our investment platforms welcome the New Year with their views for 2022.
The Most Important Rate in the Whole Wide World
Markets may be missing the importance of record-low real rates, and the potential impact if they start to rise.
The Fight Against Inflation Has Begun
We think that inflation, central bank policy and real rates will define the battlefield for markets in 2022—but will the most volatile skirmishes come sooner or later in the year?
Omicron vs. the Fed
The volatility of the past two weeks may have had less to do with the virus and more to do with underlying cyclical uncertainties about growth, inflation and Fed policy.
Solving for 2022: Joseph Amato on Equities
(6:24) As 2021 concludes, the leaders of our investment platforms got together to debate and identify the key themes that they think will guide investment decisions in 2022.
Real Rates Are the Key to This Cycle
Most of the consensus trades for 2021 failed in the second half of the year, and we think understanding why could be critical to unlocking the rest of this unique cycle.
Understanding China Market Dynamics
(15:00) We believe having on the ground insight is key to understanding China market dynamics.
Simple Equity Themes for Complex Times
Here’s why we think value and income can offer equity investors both a buffer against uncertainty and an attractive opportunity in an ongoing reflationary expansion.
Inflation Could Unbalance Policy and Portfolios
As inflation pressures build and investors question central bank policies, we think it’s increasingly important to diversify against market volatility and rising prices.
Solving for 2022: Entering a New Age
Our senior investment leaders look to the coming year in the global economy and markets.
Taking the “Byte” Out of Bitcoin
In this paper, we share our proposal on how to gain Bitcoin exposure in what we view as a more risk-efficient, hedged format that seeks to benefit from one of its most notable qualities—its volatility.
Public/Private Investing: Broadening Opportunity Within Equities
We believe private equity can serve as a core holding alongside traditional stocks to help improve investment outcomes.
The Blurred Lines of Public and Private Equity
(21:52) Companies today have a variety of pathways to go public, but we also have seen them want to stay private for longer. So where might the opportunity set be within this gray area of investing?
Bitcoin, A Cornerstone Digital Asset: Part 1
Several competitors have emerged to challenge Bitcoin and its blockchain over the past decade, but here’s why our options team believes the original digital asset is the only genuine digital asset.
Identifying Japan’s Hidden Gems
(2:26) In this video, Joe Amato, Chief Investment Officer—Equities, and the Japan Equity team introduce what makes the Japanese market attractive, and how long-term active engagement is the key to enhancing long-term value.
The Worst Seems to Be Over…Now It Gets Complicated
Investors have shifted focus from the immediate COVID-19 threat to the prospect of a cyclical slowdown and secular stagflation.
Clearing the Hurdles
On a 12-month horizon, this looks to us like an attractive environment for risky assets, but the inflection point in the current cycle is proving particularly volatile: adopting a more defensive view in the short term could help investors clear the immediate hurdles.
Caution Today, Opportunity Tomorrow
We think a more cautious stance represents a prudent approach to an already volatile inflection point between early-cycle recovery and mid-cycle expansion.
Economic and Market Review: Key Considerations for Equity Investors
Why we think the equity bull market can last at least until mid-2022.
October Surprise?
It has been 11 months since the last 5% correction in equity markets, and the coming weeks present a number of significant potential risks.
Should Investors Stay Onboard the Chinese Dragon Boat?
Surprising policy developments are rocking the craft, but in our view the course remains set for the same long-term destination, and the uncertainty and volatility may present some attractive investment opportunities.
Turning a New Leaf in Chinese Investing
(19:21) With changes to Chinese regulatory policy, many investors have started to pull away their investments in China. Putting the pandemic and geopolitical tensions aside, could these investors perhaps be leaving potential opportunities behind as a result?
ESG and Shareholder Value: Why Link Environmental, Social, Governance (ESG) Metrics to Executive Compensation?
With mounting evidence pointing to the materiality of ESG issues and potential ties to financial performance, we have seen investors asking for more companies to incorporate relevant and material sustainability / ESG metrics into their executive compensation plans.
All for One, One for All
Available data suggests that a balanced risk allocation to real assets may be the most robust way to mitigate the impact of upticks in inflation.
How Big Data Casts New Light on Reopening Stocks
Our recent work on the COVID-19 Delta variant not only reminds us that data science can give us insights into the pandemic, but also about the ways alternative data need to be marshaled to provide actionable information for our investment views.
When Offices and Shops Re-Open, Is the 5G Story Over?
Working and shopping from home during the pandemic highlighted the importance of 5G connectivity. But the pandemic only accelerated a trend that has been underway for years. Far from being over, the 5G story is only just beginning.
Thinking Big When It Comes to Small Caps
(15:57) With the rise of meme stocks making headlines earlier this year, what other investment tools might be available to new and seasoned investors alike when it comes to investing in small caps?
China Policy Moves Strengthen the Case for the Local Market
China’s regulatory reforms may be disruptive in the short term, but we see long-term positives.
If 5G Is Here, Can 6G Be Far Behind?
Whether it’s 5G or 6G, the core investment theme is the same – opportunities enabled by next generation connectivity. Investors can benefit by seeking to identify the enablers and beneficiaries of this megatrend, across a range of sectors and value chains.
Durable, Sustainable, Adaptable: Identifying Potential “Transition Winners”
In the modern economy, we believe the best long-term prospects belong to companies that have a durable competitive position, do little to no harm to society or the environment, and can adapt to change.
How Is 5G Affected by Tensions Between the U.S. and China?
Think of data as the new oil and 5G as the pipeline. 5G is seen as a strategic asset by many nations, as it is a key infrastructure to driving technology innovation and economic growth.
Delta Blues
The Delta variant of the coronavirus is rattling markets and poses real risks, but we should not be distracted from the successful impact of vaccinations.
Can 5G Help Build a More Sustainable Future?
We believe the higher speed, greater connectivity and lower latency enabled by 5G networks will unleash a range of technologies that can play a critical role in realizing the UN Sustainable Development Goals.
Ten for 2021—Midyear Update
We check in on the key themes we anticipated from the economy and markets in 2021.
What Are the “Killer Applications” of 5G?
We think there will be 5G-enabled “killer apps” in just about all aspects of life and every industry, which is why we believe that it takes a research capability covering all sectors to invest in this theme.
Reconciling the Data and the Markets
Inflation is up, Treasury yields are down, and the recovery trade is on the ropes—we believe it’s all more evidence of a fiercely debating, two-way market.
Could Asia be the Next Silicon Valley?
Asia is now the epicenter of many disruptive technology innovations and is now leading in areas like advanced semiconductor manufacturing, robotics, fintech, 5G, and digital lifestyle.
From Hanging Ten to Choppy Waves
Does a change in the weather forecast at the Federal Reserve signal an end to the early stage of this recovery cycle?
Could the Global Chip Shortage Affect the 5G Rollout?
The semiconductor sector used to be cyclical, but with the advent of 5G and broader digitalization, demand growth has become increasingly structural.
The Great Reset: Rethinking Sustainability
In the second of our conversations about the post-pandemic landscape, we spoke with a power utility and an industrial gases company about climate-related risks and opportunities.
Earnings Still Matter
Despite stretched equity market valuations, a blockbuster second-quarter earnings season could help sustain market momentum.
Commodities: Equities or Futures?
As more investors turn their focus back to commodities, it is worth remembering that commodity equities have historically generated surprisingly poor commodity exposure relative to more direct investments.
The Electrification of Mobility
(21:53) Vehicle and machinery electrification have increased in popularity, now more than ever. So what are global vehicle manufacturers doing to meet consumer demand?
Two-Way Markets Are Back
After nearly a year going up in a straight line, questions about inflation, the economic cycle and central bank messaging have brought more push and pull back into markets.
The Great Reset: Rethinking Globalization
In the first of our conversations about the post-pandemic landscape, Erik Knutzen spoke with economist Nancy Lazar about the future of globalization.
A Show of Strength by Shareholders
As the 2021 proxy voting season winds to a close across the world, it looks set to mark a watershed moment for shareholder engagement.
What Are 5G's Overlooked Opportunities?
Almost every aspect of our lives is likely to be changed by the coming of 5G, so we believe understanding the true breadth and depth of this investment theme means understanding more than just the semiconductor and telecoms industries.
When the Chips Are Down
The global semiconductor shortage is often characterized as a short-term supply-and-demand imbalance, but we think it reveals a vast and secular need for investment capital.
Roaring Twenties, or Back to the Late Teens?
This is a truly singular global recession and recovery, and it makes portfolio diversification both vital and challenging.
Jobs, Inflation and Market Volatility
This year’s inflation surprises are likely to create volatility in markets, but here’s why we think they are transitory and unlikely to derail the longer-term recovery.
REITs, Inflation and Rates
History suggests that a strong case can be made for a dedicated REITs allocation if you think inflation and interest rates are going up.
Post-Crisis Investing for the Long Haul
(17:32) Looking to macroeconomics, we evaluate if investors are now at a market inflection point and what the associated implications are that could lie ahead.
How Sustainable Are Your Proteins?
Trends around health and wellness and a growing sense of climate change concerns have given rise to the growing acceptance of a flexitarian diet.
Hedge Fund Perspectives
We explore hedge fund strategies with structural appeal in a complex market environment.
“Hidden Quality” in International Equity Markets
Traditional “quality” companies are bunched in a few sectors and appear expensive—is there a more subtle definition that can uncover “hidden” quality?
The Temperature’s Rising
As Treasury yields climb and assets geared to the recovery race ahead, the Asset Allocation Committee asks, will the economy overheat, and should investors consider rebalancing?
What Is the Toll on This Road?
The U.S. is crying out for infrastructure upgrades, but an overshoot on taxes could put its companies at a disadvantage.
What Are Women Doing About Wealth?
(16:41) As we prepare for an anticipated wealth transfer of $30 trillion to women over the next ten years, what should we know about how women invest assets differently than men?EXPLORE NEUBERGER BERMAN