Perspectives Blog

U.S. growth — better than most estimates

Zach Pandl, Portfolio Manager and Strategist | September 6, 2013

…eflects a greater focus on GDP by most analysts. While I think 3.4% probably overstates current growth momentum, I also believe the economy is doing better than the sub-2% growth rates seen in GDP bean counts from the street. Columbia Management Activity Indicator (CMAI), % annualized growth Columbia Management Activity Indicator (CMAI), % annualized growth Read Zach’s article on Why GDP deserves less attention See more Market Insights from Col…

Engineering a better retirement portfolio

Columbia Management, Investment Team | June 4, 2013

…ents the cumulative return of the 60/40 with no withdrawals. Exhibit 1: Comparing returns of the 60/40 on a $300,000 initial investment with and without $1,500/month withdrawals (adjusted for inflation): 2000–2010 Sources: Columbia Management Investment Advisers, LLC and Datastream, as of 12/12 Past performance does not guarantee future results. The 60/40 is defined as 60% S&P 500 Index/40% Barclays U.S. Aggregate Bond Index, rebalanced mo…

Why GDP deserves less attention

Zach Pandl, Portfolio Manager and Strategist | August 12, 2013

In our view, gross domestic product (GDP) data are deeply flawed. To form a more accurate assessment of the economy, investors should include other measurements, such as gross domestic income. Official GDP growth was relatively soft in the first half of this year, but the broader set of activity data suggests the U.S. economy is doing just fine. Before joining Columbia Management I worked for several years as an economist at a few of the large…

The three tax thresholds of the new tax regime

Abram Claude, Vice President, Columbia Management Learning Center | September 11, 2013

Recent legislation has added new provisions to the Internal Revenue Code that will impose new tax rates beginning in 2013. These taxes will impact many high income individuals, as well as certain estates and trusts. The Columbia Management Learning Center is dedicating a series of blog articles to this important and timely “Navigating the New Tax Regime” topic, which will appear here over the next seven weeks. In 2013, there are new tax rates…

Casting a wider net for income

Columbia Management, Investment Team | May 28, 2013

…e, explore the resources below and return to this blog for ongoing insights into the financial markets, global and economic issues and investor needs and trends. Related reading: Follow the money See more Market Insights from Columbia Management. *Securities rated below investment grade (commonly called “high-yield” or “junk” bonds) carry a rating of BB or lower by public rating agencies. Investing involves risk including…

Understanding the power of alpha

Matt Scales, CFA, Head of Product Development and Strategy | January 27, 2014

…the Russell 1000 Index (yellow line), the same benchmark used by the active manager. The shaded red area ranges from October 2007 through February 2009, or the peak-to-trough in equities during the Financial Crisis. Source: Columbia Management Investment Advisers, LLC, November 2013. Past performance does not guarantee future results. Source: Columbia Management Investment Advisers, LLC, November 2013. Past performance does not guarantee futur…