High
Looking back at equity factors in Q4 with WisdomTreeAfter three negative quarters, 2022 closed with a bang. Equities around the world delivered very strong returns in both October and November on the back of relatively good news on the inflation front. Therefore, despite a negative December, developed market equities gained 9.8% in Q4, and emerging market equities gained 9.7%.
This instalment of the WisdomTree Quarterly Equity Factor Review aims to shed some light on how equity factors behaved in this rebound and how this may have impacted investors’ portfolios.
Overall factors performed strongly for Global and US investors. Only Growth delivered an underperformance in Q4.
Value, High Dividend and High Quality dividend payers delivered the strongest performance in both regions.
In Europe, Small Cap stocks performed the best, followed by Value and High Dividend stocks.
In emerging markets, Value and High Quality dividend payers delivered the strongest outperformance.
Looking forward to 2023, the same issues that drove markets in 2022 remain. While inflation has shown signs of easing, we expect central banks to remain hawkish around the globe as inflation is still very meaningfully above target. In an environment where interest rates and inflation remain high, and volatility of both equities and interest rates is increasing, we continue to tilt toward High Dividend, Value and High Quality dividend payers.
Performance in focus: High Dividend and Value finish strong
In the fourth quarter of 2022, equity markets posted their first positive quarter of the year across regions. In October and November, markets benefitted from positive inflation numbers and increased hopes for a Fed Pivot or at least a pause in rate hikes leading to a sharp rebound. MSCI World gained 7.2% and 7% in those two months, respectively. However, hopes of such a pivot were dashed quickly, with the Federal Reserve Chair making clear in the December Federal Open Market Committee (FOMC) meeting that he wanted to see “substantially” more progress on inflation before the hiking would stop. This led the MSCI World to lose -4.3% in December.
Overall, factors performed strongly for Global and US investors:
Only Growth delivered an underperformance in Q4 in US and global equities
Value, High Dividend and High Quality dividend payers delivered the best performance across regions but mostly in the US.
In Europe, factors had a more difficult time. Small Cap stocks performed the best, followed by Value and High Dividend stocks but Quality, Momentum and Min Volatility delivered underperformance.
In emerging markets, Value and High Quality dividend payers delivered the strongest outperformance. In this market, Quality, Momentum and Min Volatility also delivered underperformance.
In Q4, the market environment continued to discriminate strongly between Quality stocks. The definition of Quality and the criteria used have hugely impacted the result. Quality, left unattended, tends to tilt toward growth (investors pay for Quality, after all) and would have suffered from that tilt, as illustrated with MSCI Quality (‘Quality’ in Figures 1 and 2). Highly profitable companies and dividend growers have fared better this quarter, as illustrated by WisdomTree Quality.
2022, the year of the dividends
Looking back at the whole year, High Dividend has dominated the factor space consistently across the year. It delivered a 13.4% outperformance to the MSCI World and a 15.2% outperformance versus the MSCI USA. In Global equities, Value and Min Volatility completed the podium with 8.3% of outperformance. In the US, the podium is a bit different, with WisdomTree Quality (that is, High Quality dividend payers) finishing second (+11.4%) and Min Volatility and Value coming third and fourth. In both regions, Growth and Quality (with its growth tilt) were the only factors to deliver underperformance. In Europe, High Dividend and Value also dominated the field.
Valuations rebounded in Q4
In Q4 2022, valuations rebounded across the board on the back of markets’ positive performance. Small Caps saw the largest increases with +1.7 in Global and European equities and +2.2 in US equities. European and Emerging markets remain quite cheap, leading to factors being cheap as well. Emerging market value is currently priced at a 4.9 P/E Ratio.
Looking forward to 2023, recession risk is continuing to rise. The International Monetary Fund (IMF) is warning of a recession in the US, a deep slowdown in Europe, and a drawn-out recession in the United Kingdom. While inflation has shown signs of easing, we expect central banks to remain hawkish around the globe as inflation is still very meaningfully above targets. The Federal Reserve made clear in its December meeting that ‘substantially’ more progress will need to happen on the inflation front before hiking stops. The European Central Bank (ECB) projections show inflation is unlikely to reach the 2% target until late 2025, leading to a hawkish turn there as well. The Bank of Japan also surprised markets in December with its own hawkish move. Overall, as we transition to 2023, three questions still remain unanswered from 2022: 1) how sticky will the underlying inflation be 2) how intense will the recession be 3) will we find a solution to Europe’s energy crisis?
With markets facing the same issues in 2023 that they faced in the second half of 2022, we continue to tilt toward the strategies that delivered for investors in 2022, that is, High Dividend, Value and High Quality dividend payers.
Please note:
World is proxied by MSCI World net TR Index. US is proxied by MSCI USA net TR Index. Europe is proxied by MSCI Europe net TR Index. Emerging Markets is proxied by MSCI Emerging Markets net TR Index. Minimum volatility is proxied by the relevant MSCI Min Volatility net total return index. Quality is proxied by the relevant MSCI Quality net total return index.
Momentum is proxied by the relevant MSCI Momentum net total return index. High Dividend is proxied by the relevant MSCI High Dividend net total return index. Size is proxied by the relevant MSCI Small Cap net total return index. Value is proxied by the relevant MSCI Enhanced Value net total return index. WisdomTree Quality is proxied by the relevant WisdomTree Quality Dividend Growth Index.
HIGH BUSD TODAYApply your own risk management.
hunt the profits at any level you see convenient for you.
Green Zone for entry,
Red Level Exit,
Yellow levels are targets.
have a good day guys.
GTC/USDT: BINANCE:GTCUSDTPERP BINANCE:GTCUSDT
Hello everyone 😃
Before we start to discuss, I'll be so glad if you share your opinion on this post's comment section and hit the like button if you enjoyed it!
$GTC have reached the Supply zone and the local highs are located before the DARVAS box's high.
With the current local high and the Supply above, It's better to have the SHORT here with a SL located at the local higher high at $1.426.
I'll trail my Stop-Loss after reaching the TP1.
Hope you enjoyed the content I created, You can support us with your likes and comments!
Attention: this isn't financial advice we are just trying to help people with their vision.
Have a good day!
@Helical_Trades
Highstreet (HIGH) formed bullish BAT for upto 19.50% pumpHi dear friends , hope you are well and welcome to the new trade setup of Highstreet (HIGH) with US Dollar pair.
Previously we caught a nice pump of HIGH:
Now on a 4-hr time frame, HIGH has formed a bullish BAT pattern.
Note: Above idea is for educational purpose only. It is advised to diversify and strictly follow the stop loss, and don't get stuck with trade
#HIGH/USDT 165% + Potential Trade Setup.Welcome to this quick Trade Setup.
Our Last few performances:-
BTC: Called the dump target to the dollar ✅
Next BTC Target of 21k HIT ✅
SUSHI Pumped:- 26% in a day ✅
USDT on Track ✅
PYR is up 10% and still on track ✅
AR on track ✅
To verify, go through my last 10 charts 😃
Follow me for more! Now let's get to the chart!
High has broken out of the long-term downtrend.
All we need is a perfect retest to get the best possible entry.
Multiple Indicators turning positive. My strategy is to accumulate on spot and DCA.
ENTRY:- $.1.45 to $1.7
MID-TERM TARGETS:-
85% to 160% (Keeping it decent)
Stop Loss:- $1.272
*Not Financial advice.
DYOR
If you want me to post more do hit the like button Follow me if you haven't yet and share your views in the comment section.
Thank you
#PEACE
UPL*Price has formed and retested the ascending triangle pattern.
Can take the long entry when 708.00 gets break till 721.00 or higher.
Profit of 1% for intraday/swing, in swing hold your trade if it is winning as most probably it will break the 721.
STOP LOSS - near 696.00
NOTE - LOOK VOLUME WHILE BREAKOUTS.
Long GCif we do a top down trend analysis we can see that now now we are in a correction in the higher time frame and we target the liquidity zone .
So we just need to look for a long entry in the lower time frames with a good RR . And to do that we need to identify the higher highs and higher lows and look to get in the high low to ride it until th eliquidity zone
Simple box to look up down trendA simple box in 20 candle to monitor price
Top is the highest and bottom is the lowest of close in 20 candles.
As close is moving outside this box then the signal is up or down trend.
Code sample:
low_val = ta.lowest(close, 20)
high_val = ta.highest(close, 20)
//Create Box
box bx = na
bx := box.new(time , high_val, time, low_val, xloc=xloc.bar_time, bgcolor=color.new(color.aqua, 90), border_width=1)
box.delete(bx )
USDJPY - Video Top-Down Analysis!Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst.
Here is a detailed update top-down analysis for USDJPY .
Which scenario do you think is more likely to happen? and Why?
Always follow your trading plan regarding entry, risk management, and trade management.
Good Luck!.
All Strategies Are Good; If Managed Properly!
~Rich
CHFJPY - My Trading Plan in a picture!Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst.
on DAILY: Left Chart
CHFJPY is retesting the previous daily highs so we will be looking for sell setups.
Knowing that CHFJPY can still trade higher and break the zone upward.
That's why we don't sell blindly, we always zoom in to lower timeframes and look for the bears to take over.
on H1: Right Chart
CHFJPY is forming a channel in red but the lower trendline is not valid yet.
So we will be waiting for a third swing to form around it to consider it our trigger swing.
Trigger => waiting for that third swing to form and then sell after a momentum candle close below it.
Meanwhile, until the sell is activated, CHFJPY can still trade higher.
Which scenario do you think is more probable and why?
Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
ABCAPITAL looks good for Breakout in Weekly TimeFrameNSE:ABCAPITAL
Abcapital looks good for potential breakout in Weekly . breakout might be happen around 112-115. but after breakout , NSE:ABCAPITAL might do consolidation or trendline retest . hence need to be watchful
A/c to Derivative Data
1. New Long addition seen
2. High Interest in Future Open Interest
vgx/usdVGX going To run so says a famous guru. Things are trending down but will watch and see what miracles happen.
Highstreet (HIGH) formed bullish Gartley for upto 21% pumpHi dear friends, hope you are well and welcome to the new trade setup of Highstreet (HIGH) with BTC pair.
On a 4-hr time frame, HIGH has formed a bullish Gartley pattern:
Note: Above idea is for educational purpose only. It is advised to diversify and strictly follow the stop loss, and don't get stuck with trade