Perspectives Blog

Could tapering be good for stocks?

Fred Copper, Senior Portfolio Manager | December 16, 2013

…quickly fled those markets (stocks, bonds and currencies were all dramatically impacted). When, in seeming response to this market riot, the Fed ultimately didn’t taper, stock markets rallied and interest rates declined. This behavioral pattern would seem to bode ill for equity and bond markets when the Fed finally does taper, which by some speculation will occur as early as this month. However, is it possible that this time could be different, t…

Navigating rising rates

Columbia Management, Investment Team | June 11, 2013

…including loss of principal. Diversification does not assure a profit or protect against loss. Duration — A measure of the sensitivity of the price of a fixed-income investment to a change in interest rates. Correlation — In finance, a statistical measure of how two securities move in relation to each other.  …

Labor markets in the new digital age

Columbia Management, Investment Team | April 14, 2014

…regarded as technology intensive, particularly in service sectors. Most at risk are those who perform routine knowledge work and cognitive tasks. This touches on diverse industries such as publishing, wholesale/retail trade, finance and bookkeeping, office and administrative, and law—even healthcare and transportation will not be immune. From pattern recognition software to driverless cars and artificial intelligence, this new industrial revolut…

Municipal market ghosts of past, present and yet to come

James Dearborn, Head of Municipal Bonds | December 9, 2013

December 3, 2013 — a seminal day in muni pension discussion. Ghost of Christmas Past – good times were had by all. Ghost of Christmas Present – sobering reality as negotiations continue to go nowhere. Ghost of Christmas Yet to Come – rising above the Detroit debacle. In the annals of public finance history, December 3, 2013, will likely be remembered as a seminal day in which the nature and direction of debate about large unfunded pensio…

More light, less tunnel

Marie M. Schofield, CFA, Chief Economist and Senior Portfolio Manager | October 31, 2013

…business service had been the source of above trend gains earlier this year and now are the source of the softer reads. In particular, Restaurants (part of leisure) saw a cut of 11,000 jobs, the first decline in three years. Finance also saw job losses, as mortgage refinancing activity fell due to the rise in interest rates. Countering this somewhat, goods-producing industries saw above average gains in construction (both residential and non-res…

When the QE tide recedes, focus on what is revealed

Robert McConnaughey, Director of Global Research | January 6, 2014

…y conscious of income inequalities. In the United States, we have seen increasing confidence in the general competitiveness of businesses in key growth industries supported by the solid capitalization of the banking system to finance future growth and the revolution in energy production as a major input to overall increased cost-competitiveness. On the risk side of the ledger is the lack of adequate progress around fiscal reform or entitlements,…