Perspectives Blog

What to make of the rebound in emerging market equities

Dara White, Senior Portfolio Manager | April 14, 2014

…, much of the news from the emerging markets (EM) was negative. We saw headlines highlighting the liquidity headwinds created by U.S. QE tapering, Russia’s aggressive opportunism in the Ukraine, China’s imminent hard landing, Brazil’s drought leading to an imminent energy crisis, a state of emergency being declared in Thailand, Turkey’s political soap opera continuing with business and political leaders being arrested on corruption charges, serio…

Opportunities in global infrastructure

Peter Santoro, Senior Portfolio Manager | February 3, 2014

…wers will replace telephone poles; natural gas pipelines will displace coal trains fueling utilities. To illustrate the size and focus of the global demand for infrastructure, let’s examine some examples of spending trends in Brazil, China, India and the United States. Brazil • In August 2012, the government said it would spend $69 billion by the end of 2014 to improve its transportation systems. • The infrastructure spending for the 2014 World C…

From tactical to core – The case for emerging market debt

Columbia Management, Investment Team | June 2, 2014

…and led to deteriorating technical factors and investor concerns about the impact of more expensive capital on current account deficit countries. Country-specific volatility in countries such as Venezuela, Ukraine, Turkey and Brazil also contributed to concerns about the sector. 2013 created value in a sector with continued fundamental appeal Last year’s weak performance has created value in the sector, especially in the context of stretched valu…

Comments on the effect on global markets from the Ukraine crisis

Mark Burgess, Chief Investment Officer, Threadneedle Investments | March 12, 2014

To date, the fallout from the Ukrainian crisis has been largely confined to the emerging market debt, emerging market equity and commodity markets. At current levels, emerging market local currency debt appears to offer value, although we expect both the hard and local currency markets to remain volatile in the short term. Emerging equities reflect concerns not only around Russia and Ukraine but also the weaker growth outlook in Brazil and China…

Not all emerging markets are created equal

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

…moval of energy subsidies are making moves in the right direction. 2014 will be an important year on the reform front – execution of the Chinese reforms are obviously on the market’s mind, but presidential elections in India, Brazil, South Africa, Indonesia, Turkey and possibly Thailand have the potential to increase volatility, but also open a window for reforms to gain momentum if the ruling party wins with a strong mandate. On the point of ref…

Gut check: The outlook on fixed income

Colin J. Lundgren, CFA, Head of U.S. Fixed Income | February 24, 2014

…market that suffered the most last year were those that ran large current account deficits and faced potential funding challenges when the Fed tapered (i.e., the so-called “Fragile Five” countries of India, Indonesia, Turkey, Brazil and South Africa). These risks warrant caution for sure, but the broad sell-off may be creating opportunities in countries that make prudent policy decisions regarding fiscal policy, interest rate management, etc. Mor…