Cover Story = Eight plus years into the market recovery, we see valuations extended as most of the gains since 2014 have been driven by multiple expansion rather than earnings growth. In this issue of Global Foresight, we highlight potential investment opportunities, as well as challenges to sustaining this bull market. We examine emerging markets with Jimmy Chang focusing on China, and DAVID P.HARRIS,CFA Chief Investment Michael Seo on South Korea. We also comment on corporate governance in an cer 212.549.5210 article by Dr. Mariela Vargova. [email protected] The Charging Bull The lifespan of a bull market typically lasts many years, at times _ highest it has been except during two famous market peaks— ending abruptly. Conversely, the statue now on Lower Broadway _—_1929 and 1999. We believe the CAPE ratio is cause for concern, known as Charging Bull had a very short-lived initial run on _ but not alarm. It most likely suggests that U.S. equities will have Wall Street. It is not widely known that Charging Bull was never subdued future returns. However, unlike the market’s prior commissioned by the City of New York nor by any one of its _ peaks at the end of the Roaring Twenties or the dot-com era, major investment banks. Rather, the three-and-a-half-ton | we do not believe we are in the midst of an economic or market statue was simply unloaded one December day backin 1989 by bubble. If there is a benefit to the subdued economic recovery a private citizen in front of the New York Stock Exchange. we have recently experienced in the U.S. where GDP growth The benefactor was Italian sculptor Arturo di Modica who cre- has been averaging about 2.0%, i a that the economy has not ated Charging Bull to demonstrate his belief in the strength of built up the excesses that it did during past peaks in the CAPE the U.S. economy after the stock market crash in 1987. Hours 40. Eyreenin ast, during the sau US. real GDP gown aver after di Modica delivered his statue, it was removed