Entries by Harold E. Sharon

    Eurozone in the Comfort Zone?

    May 24, 2016 11:00 AM by Harold E. Sharon

    No, not quite. While overall growth in the first quarter of 2016 finally returned to pre-crisis levels, the need for significant structural reforms still looms large.

    It took eight years and a double-dip recession, but the eurozone’s gross domestic product (GDP) has finally surpassed the levels seen during the pre-crisis era.

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    China: Doing What They Said They Would

    January 8, 2016 2:43 PM by Harold E. Sharon

    Developing its own independent monetary policy means China no longer has to hitch its currency to the strong U.S. dollar. And that should be a positive, not a negative.

    Once again, China's currency and its stock market are dominating the financial news as we start the new year. Will this, as it did back in August, set the tone for the next six months? Or is this just the ongoing story of China following through with its announced plans to allow more currency flexibility and mobility, thus allowing it to finally have its own monetary policy rather than being beholden to the U.S. Federal Reserve’s interest rate policies? 

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    Why Irish Eyes Are Smiling

    September 24, 2015 4:58 PM by Harold E. Sharon

    Thanks to a "NICE" recovery—that is, non-inflationary, creditless expansion—once-beleaguered Ireland is poised to report the fastest economic growth in the eurozone over the next two years.

    - “A commercial building in the middle of downtown Dublin thought to be worth €50 million sells for €90 million.”
    - “Taxes are being cut, and government spending is increasing in the 2016 budget.”
    - “GDP is above the 2007 peak, and growing at roughly 5.5% for 2015.”

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    Small-Cap World Tour: The REIT Time for Spain?

    June 26, 2015 9:55 AM by Harold E. Sharon

    With quantitative easing driving recovery in Europe, some Spanish real estate investment opportunities feature the potential for attractive yields and capital appreciation.

    (Third of a three-part series.)

    After investing aggressively in German real estate companies, Lord Abbett’s international small cap equity team has found similar opportunities in Spain, one of the cheaper rental markets for commercial space in Europe.

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    Small-Cap World Tour: A Yen for Japan

    June 19, 2015 12:20 PM by Harold E. Sharon

    Why Japan is attracting more foreign investors in small caps

    (Second of a three-part series.)

    The Lord Abbett International Opportunities Fund looks at a variety of companies in small cap. They may be best of breed, with a long track record, quality management, and strong niches they dominate. They may be younger companies with true growth potential in relatively new industries, or they may simply be overlooked companies, whose intrinsic value may have been underestimated by the market.

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    Small-Cap World Tour: Passage to India

    June 16, 2015 4:50 PM by Harold E. Sharon

    Why certain small caps in India appear more attractive than in China

    (First of a three-part series.)

    Imagine a politically dysfunctional country that imports 80% of the oil it consumes. If world oil prices hit $100 or more, double-digit inflation is likely to ensue. Factor in a new pro-market government, widespread reforms and lower commodity prices, including oil, and that country is likely to attract considerable amounts of international investment.

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    Quantifying the United States' Energy Advantage

    May 27, 2014 11:12 AM by Harold E. Sharon

    The global repercussions of the shale boom are enormous. 

    One of the greatest technological achievements of our time is not a product of Silicon Valley, but the result of blood, sweat and tears on America’s oil fields. The engineering breakthrough in hydraulic fracturing and horizontal drilling is a "made-in-the-USA" phenomenon, and its impact on shale gas and oil production is adding economic value globally. (See "Breaking Bad Rocks: How the Shale Boom Has Fueled Growth.")

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    Why Europe May Attract More Investor Attention

    April 23, 2014 2:01 PM by Harold E. Sharon

    After years of lagging the global economic recovery, Europe is showing signs that it can stave off deflation and rekindle meaningful growth.

    Harold Sharon, Lord Abbett Partner and International Strategist

    While other major economies have recovered at varying rates from the global financial crisis, the eurozone has been the clear laggard. For Europe, stimulus came late, was very hard to coordinate in a timely way, and was diluted over time.  The upshot is that Europe, if policymakers can agree, has more room to accommodate further measures, such as central bank support, fiscal reforms, and structural economic reforms.  If so, there may be more reaction still ahead in Europe that can support the capital markets, and perhaps this warrants more investor attention for that reason alone.

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