Perspectives Blog

Opportunities in the middle ground

Columbia Management, Investment Team | July 2, 2013

Investors seeking growth opportunities for an equity portfolio should not overlook mid-cap stocks. Mid-size companies typically feature a combination of desirable attributes – more stable than start-ups yet more flexible than large companies. Investors holding mid-cap stocks over long periods have benefited from strong performance with less volatility compared to small-cap stocks. Finding the middle ground usually means making compromises. But…

Second quarter asset allocation positioning

Columbia Management, Investment Team | May 14, 2013

the team’s current positioning. Neutral on stocks Within U.S. capital markets, we remain overweight large-cap stocks particularly of high-quality, dividend-paying large companies. We maintain an underweight in the small- and mid-cap segments of the domestic market. We prefer U.S. stocks over international stocks, and although the financial stresses in Europe have abated somewhat, we continue to underweight European stocks. Growth prospects in th…

Three investments that could return to favor in 2014

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

amentals. Finally, we should find some cause for optimism that the underlying fundamentals for the investment might change in a meaningful way to the extent that investors feel compelled to change their minds about allocating capital to such an investment. On this note, we briefly describe three opportunities that present themselves as candidates — in particular, Japanese stocks, emerging market stocks and active stock selection strategies. Japan…

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…

Looking for diversification in emerging markets

Columbia Management, Investment Team | July 30, 2013

Emerging markets have become a significant component of the global economy, with higher GDP growth rates compared to developed markets. The wide range of local conditions and growth drivers present in emerging markets makes them particularly interesting as a diversifier for investors already exposed to developed markets. We believe that, for diversification, investors should consider small-mid cap emerging markets investments. By the Columbia…

Could tapering be good for stocks?

Fred Copper, Senior Portfolio Manager | December 16, 2013

…out slowing the rate at which they are buying government and mortgage securities, interest rates around the world rose and stock markets fell, with the biggest pain being felt in those emerging markets most reliant on foreign capital flows as money quickly fled those markets (stocks, bonds and currencies were all dramatically impacted). When, in seeming response to this market riot, the Fed ultimately didn’t taper, stock markets rallied and inter…