Perspectives Blog

2015 Outlook — Same song, slightly different arrangement

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | December 15, 2014

…ur outlook remain in place, we highlight two important changes in the market environment: The relative value of global equities vs. global bonds actually improved during 2014. Monetary policy around the globe has become desynchronized, with the U.S. Federal Reserve (the Fed) contemplating rate hikes, while the European Central Bank (ECB) and the Bank of Japan (BOJ) intensify their monetary stimulus programs. In this article, I will detail the i…

The end of “risk-on/risk-off”

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

…o macro factors and less to individual stock or bond characteristics. For example, while the correlation between equities and commodities used to be negative or very low, it rose to over 80% during the crisis years (2008-2011). Correlations between equities in different regions (emerging markets (EM) vs. developed markets (DM)) used to be low, but also rose to over 80% during this same period, reducing the benefits of cross-regional diversificati…

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

…arkets had a difficult start to the year. After experiencing negative returns in January, both U.S. and European equities recovered in February and are now slightly positive for the year. The best returns have come from U.S. small-cap equities along with shares of equities domiciled in the periphery of Europe. These two broad groups are both up mid-single digits. Emerging market equities continue to lag developed market performance. And, Japanese…

Global asset allocation outlook (August 2014)

Columbia Management Global Asset Allocation Team, | September 8, 2014

We have advocated an overweight to equities for several years. Even through the early year setbacks for the global economy and for global stocks, our views favored equities over other investment choices. To the degree that our overall investment stance has been overweight equities, we have willfully assumed a higher risk profile than usual. So far in 2014, equities have not disappointed, with the U.S. market in particular rising nearly 9% throug…

Emerging market equities — Still a world of opportunity

Georgina Hellyer, Fund Manager | December 1, 2014

…management, healthy balance sheets and strong cash flow to finance their growth projects. Emerging market (EM) equities delivered stellar returns over much of the noughties. With the Chinese economic miracle at the forefront, we witnessed a period of strong economic growth, fast-growing domestic consumption and appreciating currencies. After the global financial crisis struck in 2008, investors began to wonder whether the EM story might even pr…

Global asset allocation outlook (as of March 2014)

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

…% to end the quarter modestly higher. Within international markets, European, emerging markets (EM) and Japanese equities lagged U.S. equities. By the end of the 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 internation…