The Columbia Management Perspectives blog offers our insights on current market events and investment opportunities.
As asset correlations change, so does their diversification effect. We believe effective diversification is achieved through a set of investments that will react to the same market differently (i.e., a lower correlation). But, as the graph below illustrates, correlations aren’t static — they change over time, moving both higher and lower. For the goal of mitigating Read More
Current French President Nicolas Sarkozy was defeated by the socialist candidate Francois Hollande in last Sunday’s presidential election. Sarkozy’s defeat follows the ouster of governments in the Netherlands and Greece among others, as voters appear to be rejecting the German-influenced austerity programs implemented across Europe. Earlier this year, we pointed out that we believed that Read More
By Christian Stadlinger, Senior Portfolio Manager Alternative and renewable energy have become modern buzzwords in the investment world that ring with excitement. While some technologies are well established and much debated (corn ethanol), others are booming (shale gas and oil), there is a recent class of energy companies with technologies that just a few years Read More
By Paul DiGiacomo, Senior Equity Analyst Long-haul trucking is a difficult job, with low pay and a poor quality of life. Drivers typically spend nearly a month on the road before returning home, and the work is physically demanding. Gone are the glorious days of Smokey and the Bandit, and for many, driving a truck Read More
Recently there has been a revival of interest in dividend-paying stocks. Despite this renewed enthusiasm, the percentage of earnings being paid to shareholders in the form of dividends currently remains below 30% as companies continue to hoard cash in an uncertain global economy. An evolution in attitude among management teams may ultimately end with excess Read More
By Beth Vanney, CFA, Portfolio Manager “Sell in May and go away” is a popular Wall Street adage referring to the belief that returns from October through April tend to be higher than returns from May through September. We thought it a timely topic to investigate — paying particular attention to the election year cycle. Read More
Municipal bonds can be an important source of tax-exempt income for many investors. Investors can choose from an array of municipal bond investments to tailor their portfolios according to their risk tolerance, income and return objectives, and state of residence. Despite recent concerns, the municipal market has performed well. Municipal bonds, as measured by the Read More
The views expressed are as of the date given, may change as market or other conditions change, and may differ from views expressed by other Columbia Management Investment Advisers, LLC (CMIA) associates or affiliates, Actual investments or investment decisions made by CMIA and its affiliates, whether for its own account or on behalf of clients, will not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not account for individual investor circumstances. Investment decisions should always be made based on an investor's specific financial needs, objectives, goals, time horizon, and risk tolerance. Asset classes described may not be suitable for all investors. Past performance does not guarantee future results and no forecast should be considered a guarantee either. Since economic and market conditions change frequently, there can be no assurance that the trends described here will continue or that any forecasts are accurate. Please see our social media guidelines.
