Perspectives Blog

Could tapering be good for stocks?

Fred Copper, Senior Portfolio Manager | December 16, 2013

…interest rates around the world rose and stock markets fell, with the biggest pain being felt in those emerging markets most reliant on foreign capital flows as money 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…

How will the Volcker rule impact capital markets?

Richard Manuel, CFA, Senior Analyst | January 6, 2014

…re was great consternation in the industry – warnings that it would impair the proper functioning of our capital markets and produce an uneven playing field for U.S. firms, making them less competitive in global markets. With the final rule out, though some uncertainty remains, it seems that tragedy was averted and that our capital markets will continue to thrive. There has been considerable debate as to the role proprietary (“prop”) trading play…

Not all emerging markets are created equal

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

We see emerging markets shifting from an environment of common thematic tailwinds to one of more idiosyncratic outcomes We believe that painting all emerging markets with a broad brush is a mistake We examine some of the key factors in uncovering EM investment opportunities Emerging markets (EM) is a term given to a universe of countries that is extremely diverse across a wide number of variables including geography, levels of industrializatio…

Comments on the effect on global markets from the Ukraine crisis

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

…ange. We therefore do not expect major sanctions against the country. Elsewhere, investment grade and high yield markets have been unmoved by the crisis in Ukraine. Foreign exchange markets, outside of the obvious areas such as the rouble, have also ignored it. Developed market equity and bond markets have recently been driven by other factors such as the headwinds from a stronger pound for the UK equities, the severe weather in the U.S. and the…

October — It always seems to happen in October!

Ted Truscott, CEO, Global Asset Management | October 20, 2014

…y too quickly.”* Welcome to October, a month that more often than not seems to bring out the worst in financial markets. After a remarkable period of calm, low interest rates and more than five years of rising markets, the last few weeks have certainly been nauseating. What’s behind all of this and why are markets reacting now? 1)  As the quote above suggests, worldwide growth has surprised on the downside. However, there is an even darker side…

Emerging Markets: Waiting on exports

Anwiti Bahuguna, Ph.D., Senior Portfolio Manager | March 31, 2014

…s have remained sluggish for the past three years due in part to the subpar nature of global growth. As emerging markets struggle to overcome the challenges to their growth story, the EM landscape will likely face significant challenges ahead. Equity markets in the developed world did very well in 2013 while the picture was far more mixed in the developing world. So far this year emerging market (EM) stocks have not just trailed developed market…

Asset allocation – Kinetic vs. potential energy

Columbia Management Global Asset Allocation Team, | August 4, 2014

…he two provides a helpful metaphor as we formulate our investment strategy. The following excerpt focuses on our equity strategy. Using the metaphor of kinetic energy as a tenacious force, we find that most equity markets across the globe were swept up in the first half of the year. Returns on equity investments across the globe — U.S., Europe, emerging markets — were positive. Despite surprisingly weak first quarter growth, overall economic mome…