Perspectives Blog

Emerging Markets: Waiting on exports

Anwiti Bahuguna, Ph.D., Senior Portfolio Manager | March 31, 2014

…tive competitive advantage and market share. In late 2012, Robert McConnaughey, Director of Global Research, argued that one should not dismiss the relative strengths of U.S. competitiveness. Low cost production from emerging Asia was a threat to U.S. businesses, but American businesses adapted to the environment, using outsourced labor and overseas capital deployment as an asset to improve corporate productivity and margins. This evolution has c…

Defense industry outlook – Looking past the headlines

Ben Blomberg, Senior Equity Analyst | March 17, 2014

…kely will continue to be well supported, as evidenced by the FY14 (fiscal year 2014) FYDP (future year defense plan) that accompanied the FY14 government “Green Book” as a result of the Department of Defense (DoD) pivoting to Asia (see Exhibit 1). While Army spending remains under pressure due to a declining base budget and headwinds from conflict-related supplementals, the defense build-up between 2003 and 2009 had almost exclusively benefitted…

Quality milestone in the European recovery story

March 17, 2014

…the differential in GDP estimates between Europe and other regions globally particularly interesting. The current consensus is that the eurozone will see GDP growth of 1.1% in 2014, compared with 2.9% in the U.S., and 6.3% in Asia. Should this growth gap narrow, we could see further inflows into European funds, and we believe this is one of the reasons why the euro is currently strengthening. So we remain optimistic on Europe’s recovery and recen…

Not all emerging markets are created equal

Robert McConnaughey, Director of Global Research | January 27, 2014

…rrent account deficits and ability to attract foreign direct investment. While there is legitimate concern about levels of external financing in some markets, it is worth noting how much stronger the situation is in Southeast Asia, for example, relative to the crises of the late 1990s. • Countries that saved and wisely reinvested their commodity windfall vs. those that did not. • Perhaps most importantly, countries undertaking structural reforms…

Looking for diversification in emerging markets

Columbia Management, Investment Team | July 30, 2013

…is century, emerging market gross domestic product (GDP) growth rates have been higher than those in developed markets. The IMF projects that higher GDP growth in emerging markets will likely continue in 2014. Driven by South Asia and Africa, emerging markets’ population growth is also likely to outstrip that of developed countries for years to come. It’s important to remember that higher GDP growth does not necessarily translate into better prof…