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…

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…

The world has gone global. Have you?

Paul Berlinguet, Vice President, Equity Products | May 21, 2013

Many large companies derive significant revenue outside of the U.S. International markets offer both growth opportunities and attractive equity yields. Investors should consider global dividend funds as part of their current portfolio. The line between domestic and global securities has blurred. The top constituents by market capitalization of the S&P 500 index include Apple, Exxon Mobil, Microsoft and Johnson & Johnson. The MSCI All C…

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…

January asset allocation update

Jeffrey Knight, CFA, Head of Global Asset Allocation | February 3, 2014

As we assess the global markets in early 2014, our overall portfolio strategy remains modestly overweight equities and underweight fixed income. While we have been anticipating an increase in volatility, we still believe equities will outperform bonds over the course of the year. The current low level of interest rates suggests returns from bonds remain unattractive on a longer term strategic basis. Real returns are likely to be low to potential…

An improving outlook for European equities

Philip Dicken, Head of European Equities, Threadneedle International Ltd | October 18, 2013

…few months ago the eurozone was in meltdown. Bond spreads were widening, the political environment appeared fragile and earnings estimates were falling. Certainly, if you wanted to create an economic zone representing 17% of global GDP, you would not start from here. Nevertheless, we believe there are signs that the outlook is finally brightening. While Europe remains beset by challenges, the economic background is improving, valuations are look…