Perspectives Blog

Three investments that could return to favor in 2014

Jeffrey Knight, CFA, Head of Global Asset Allocation | December 16, 2013

for Japanese corporate earnings growth next year is higher than the levels that we expect in the United States, the UK or Europe. For these reasons, we begin 2014 with an overweight position in Japanese stocks. Source: IBES Global Estimates, Datastream, November 2013. Emerging market stocks are also tempting. These stocks have essentially sat out the last 18 months of worldwide equity rallies, and in doing so have become among the world’s most…

Should investors care about valuation?

Rich Rosen, Portfolio Manager | November 25, 2013

Is valuation an effective tool for deciding on whether to invest in a stock? We look at other drivers of a stock’s worth Earnings and earnings growth could be more useful in evaluating a stock’s worth Many of the market experts paraded around on the business programs, when asked about their forecast for stocks, often begin with a comment about valuation. But really, how effective is valuation as a gauge for determining whether it is a good tim…

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…

Second quarter asset allocation positioning

Columbia Management, Investment Team | May 14, 2013

Within equities, we maintained an overweight to U.S. stocks, with emphasis on large-cap stocks and high-quality, dividend-paying equities. For fixed income, we continue to prefer investment grade corporate bonds. We believe low correlation absolute return strategies should continue to be a part of diversified portfolios. The Columbia Management Asset Allocation Team meets to review global economic investment conditions and markets. Team member…

Income inequality, disinflation and profit growth – the role of globalization

March 10, 2014

Income inequality has tended to rise in both developed and EM. Companies look across the globe to determine where they can manufacture their products at the lowest risk-adjusted cost. We believe that the global unit labor cost arbitrage is likely to continue for many decades. By Marie Schofield, Chief Economist and Toby Nangle, Head of Multi Asset Allocation Last week we discussed rising income inequality in developed markets and the degree to…

Emerging Markets: Waiting on exports

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

Exports by emerging market economies are the most important factor in explaining long-term growth. EM exports 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 mixe…

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…