Global Perspectives

Global Perspectives offers global economic, market and investment commentary on Monday morning of each week.

October 2013 Archive

Inflation matters

Columbia Management, Investment Team | October 11, 2013

Inflation is deceptive because it acts slowly. Portfolios must overcome inflation to maintain purchasing power. Even in today’s low-inflation environment, holding higher amounts of cash could be costly. Despite signs that the U.S. economy is improving, now is an especially challenging time for investors, especially those in search of income. Historically low yields have made

The Yellen Fed

Zach Pandl, Portfolio Manager and Strategist | October 9, 2013

President Obama to nominate Janet Yellen for Fed Chair. Yellen has strongly supported the Fed’s unconventional easing measures in recent years, and we expect that her nomination will therefore be interpreted as favorable to duration and carry trades. Yellen has described an “optimal control” framework, which could indicate a coming revision to the current structure

More heat than light

Zach Pandl, Portfolio Manager and Strategist | October 3, 2013

Recent comments from the Fed have provided relatively little information about future QE tapering decisions. Officials have expressed contradictory views on several major policy concerns, including the state of the labor market. If economic growth continues over the next few months, tapering may commence in December. Following their surprising decision to maintain the current pace

Strategies for business owners to reduce net investment income tax

Abram Claude, Vice President, Columbia Management Learning Center | October 2, 2013

Self-employment income may be included in an individual’s net investment income, or may raise modified adjusted gross income beyond the net investment income threshold. Business owners may be able to reduce exposure to the net investment income tax by establishing a qualified retirement plan, and characterizing a portion of business earnings as pretax contributions to