Perspectives Blog

The end of “risk-on/risk-off”

Anwiti Bahuguna, Ph.D., Senior Portfolio Manager | February 3, 2014

…ame roaring back with the sell-off in EM assets bleeding into the developed markets. Equities, commodities, credit spreads, EM assets and carry trade strategies all underperformed with only sovereign bonds rising. Admittedly, global financial markets have shown some stabilization in the last year, but it’s too early to call an end to the risk-off/risk-on regime. Markets are still very much driven by intervention from policymakers across the globe…

Has dividend investing lost its luster?

Columbia Management, Investment Team | May 12, 2014

Higher-yielding equities underperformed the market last year raising questions about whether dividend investing remains an attractive strategy. Even if rates continue a long-term increase from current levels, we expect that equities sensitivity to rising rates will decline. We believe the drivers that have resulted in historical stock market outperformance from high-yielding equities remain intact. By Paul Stocking, Senior Portfolio Manager an…

Global Asset Allocation Outlook (as of February 24, 2014)

Columbia Management Global Asset Allocation Team, | March 10, 2014

onger dated Treasuries, municipal debt and high-yield corporate bonds leading the way. The dollar weakened against both emerging market and developed market currencies. Despite a slight slowdown in recent economic growth, our Global Asset Allocation proprietary investment clock for the U.S. signals continued economic expansion. The investment clock allows us to better understand the behavior of the business cycle and the resulting impact on asset…

Global asset allocation outlook (as of March 2014)

Columbia Management Global Asset Allocation Team, | April 7, 2014

he quarter, however, risk assets rallied, with the EM rising about 10% from their lows in February. Fixed income saw better returns than equities. The benchmark Barclay’s Aggregate Index was up about as much as U.S. equities. Global fixed income sectors fared even better as both international developed bonds and EM bonds rose about 3%. The spread sectors within fixed income continued to perform well. Other hybrid bond like assets, such as convert…

Global Asset Allocation Outlook (as of May 13, 2014)

Columbia Management Global Asset Allocation Team, | June 2, 2014

The global asset allocation team reaffirmed their recommendation to modestly overweight equities versus bonds, despite the slight underperformance of equities relative to bonds so far this year. The S&P 500 is up about 3.5% while the Barclay’s aggregate index is up 4.0% and longer dated bonds are up over 13%. This strong bond market performance is contrary to consensus expectations which had forecast yields to rise above 3.5% this year. With…

Global market mid-year outlook

Mark Burgess, Chief Investment Officer, Threadneedle Investments | June 16, 2014

Overall macroeconomic picture in U.S. should push bond yields higher, particularly if the Fed stops its QE program later this year. We remain positive on emerging market debt while maintaining a bias against emerging market equities. Overall equity markets have been strong and current index levels suggest that investors still have confidence in the outlook for profits. Global equities and global bonds made progress in May with the former outpa…

European equities – Should investors care about periphery vs. core anymore?

Dan Ison, Portfolio Manager | January 13, 2014

The more dramatic the economic reforms, the better the stock market performance in the eurozone We expect nominal growth to be the key driver of an improving earnings picture in Europe European equities should show further good returns to investors in 2014 As we enter 2014 there are the usual questions, conversations and strategy pieces extolling the virtues of different regions and asset classes. 2013 saw a phoenix-like resurgence in interest…