Perspectives Blog

The beginnings of a new moderation in Asia

Soo Nam Ng, Head of Asian Equities | June 2, 2014

The Great Moderation was a period of macroeconomic growth and reduced volatility that provided a backdrop to the strong performance of U.S. equities. The lessons hold relevance for equity investors in Asia as big picture conditions for a Great Moderation are starting to fall into place. We believe the “new moderation” mindset will take Asia into its next leg of development, unleashing its potential in a more sustainable and stable manner. Less…

Harvesting a New Moderation in Asia

Soo Nam Ng, Head of Asian Equities | June 23, 2014

Companies with competitive strengths still intact should have positive profit growth once adaptive change gets underway. The ability to control cost is essential to surviving the growth slowdown in Asia Pacific ex Japan. We do not just need companies to be adapted; we also need them to be positioned for adapting. A New Moderation in Asia In my previous article, I argued that conditions are in place for the slowdown in Asia to evolve into a sus…

Investing selectively in Asia

Soo Nam Ng, Head of Asian Equities | July 14, 2014

…e see the greatest contrarian opportunities in sectors where market sentiment has been most depressed. In my previous two articles, I argued that big picture conditions for more sustainable growth are beginning to surface in Asia (article1, article2). Furthermore, Asia’s corporate sector has been adapting to the moderated growth environment by streamlining cost and capital expenditure. The final question we shall address is how investors should…

Global Asset Allocation Outlook (as of May 13, 2014)

Columbia Management Global Asset Allocation Team, | June 2, 2014

…overweight position in developed international markets. However, we have downgraded UK on valuation concerns and deteriorating monetary conditions. We remain neutral overall emerging market equities but have upgraded emerging Asia. Although there hasn’t been sufficient fundamental improvement in most emerging economies, several central banks, particularly in Asia, have taken steps to strengthen their currencies and improve external funding. Moreo…

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…

Global Asset Allocation Outlook (June 2014)

Columbia Management Global Asset Allocation Team, | June 30, 2014

…quarter also came in ahead of expectations and rose almost 6% compared to last year. We continue to recommend a neutral stance on overall EM equities. However, we find selective opportunities within EM and we prefer emerging Asia and have upgraded EMEA. In addition, we downgraded Treasuries further from an underweight to a maximum underweight position. We expect stronger growth ahead to drive bond yields higher and the recent rally in bonds have…