Perspectives Blog

Finding the sweet spots in corporate spending

Robert McConnaughey, Director of Global Research | February 24, 2014

Investors could find opportunity in capital expenditures. Strategic positioning in these areas is key to opportunity. Shale gas and automation are leading the charge in innovation. Cash balances at U.S. non-financials corporations have exploded in the post-crisis era, up 75% since the end of 2007. This is despite a rising return of cash to shareholders in the form of dividends and share repurchases. However, capital expenditures and reinvestme…

Labor markets in the new digital age

Columbia Management, Investment Team | April 14, 2014

The downside to technological progress is short-term dislocations and job loss for those displaced by automation. Workers with high skills and advanced education command a wage premium while unskilled and lower-skilled workers are displaced which aggravates income inequality. The winners will be those who have skills complementary to the new emerging technologies and those who discern how best to adapt and gain competitive advantage. By Marie…

It’s a mobile world

Dave Egan, Senior Equity Analyst | March 10, 2014

…tems reiterated its long-held and provocative view that IoT is a 5 to10x bigger opportunity that the original Internet. From a use case perspective, IoT can be bucketed into wearables, connected home & auto and industrial automation. From a technology perspective on the component side, the three key technologies are connectivity (Wifi, Bluetooth, Zigbee, Ethernet), sensors (motion, temp, positioning) and processing, with connectivity being th…

Scarce growth – Can the tortoises continue to outpace the hares?

Robert McConnaughey, Director of Global Research | May 19, 2014

…ecific valuations of high growers in general as a major issue. Finally, I would note two things about growth investing. First, exciting things are happening around innovative software, cloud computing applications, industrial automation and biotechnology; these areas are gaining significant share of their broader global industries with real advances in productivity and effectiveness. These are nothing like the “all hype, no substance” companies a…