Perspectives Blog

Engineering a better retirement portfolio

Columbia Management, Investment Team | June 4, 2013

…etirement are waking up to the sobering reality that their nest egg may fall short of being able to comfortably fund their retirement years. The combination of undersaving, low interest rates and a decade of challenging stock markets has created a personal retirement funding deficit that has many struggling to find a way out. Unfortunately, there is no silver bullet. A solution will likely require pulling a number of different levers; working lon…

Time, not timing

Columbia Management, Investment Team | November 26, 2013

Historically, some of the worst short-term market fluctuations and losses were followed by periods of substantial market recovery. Investors who try to time market swings often end up missing out on the market’s best days. Asset allocation, diversification and periodic rebalancing are tools investors can use to help weather market downturns. Sometimes the best selling strategy for investors may simply be — don’t. Focus on buy and hold for the…

Labor market takes center stage

Zach Pandl, Portfolio Manager and Strategist | October 15, 2013

Labor market issues have long taken a central role in Janet Yellen’s career. Remarks indicate Yellen views current labor market challenges as potentially very costly for the economy, and she sees a role for monetary policy in promoting recovery. Yellen’s nomination likely raises the bar for Fed tightening, as long as inflation remains low. When it comes to the current priorities for monetary policy, investors already know where Janet Yellen st…

Outlook for the leveraged loan market

Columbia Management, Investment Team | June 20, 2013

We find that the leveraged loan market is much healthier today than five years ago and we continue to be constructive on the asset class. Compared to the pre-Great Recession period, the pricing of loans today is much more reasonable in the context of credit risk and corporate fundamentals are stronger. A robust credit review process is a key component of successful investing in this asset class. By Lynn Hopton and Yvonne Stevens, Co-Heads of L…

Detroit’s collateral damage

Ty Schoback, Senior Municipal Analyst | October 24, 2013

The State of Michigan’s failure to preserve the integrity of the General Obligation (GO) pledge in Detroit has greatly undermined the market’s confidence in debt issued within Michigan. It has also resulted in increased borrowing costs for other Michigan entities. The State communicated to investors the UTGO security pledge of local governments should not be considered any stronger than a basic appropriation or lease, raising significant concer…

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…

Fixed income outlook: From liquidity to growth

Gene Tannuzzo, CFA, Senior Portfolio Manager | July 10, 2013

Bond market performance weakened following Fed comments on tapering QE. Over the next couple of quarters, we expect a transition from a market priced for liquidity to one priced for growth. We believe markets will eventually begin to focus less on the Fed and more on the fundamentals of a slowly improving global growth story. Global bond markets have been under siege for much of the past two months. Looking back to April, the bond market, in o…