Perspectives Blog

Thoughts on navigating market volatility in today’s technology markets

Rahul Narang, Senior Portfolio Manager | April 28, 2014

“eyeballs”). Given the significant sell-off in the sector of the last few weeks, we believe it is prudent to take a look at valuations from a historical context. Forward EV/EBITDA multiples are now at 14x and peaked at 16.7x mid-quarter. The five year average forward EV/EBITDA multiple is 12.4x. This puts us around 13% above the five-year historical average forward EV/EBITDA multiple. Again, it is worth emphasizing that we see the strong franchi…

Three investments that could return to favor in 2014

Jeffrey Knight, CFA, Global Head of Investment Solutions and 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…

Special report – 2014 mid-year review and outlook

Columbia Management, Investment Team | June 16, 2014

…utlook: Economic trends still appear likely to pick up in the second half of 2014 to near 2.75%, as drags continue to unwind. Positives for the outlook include a reversal of the brake from fiscal contraction, further gains in capital spending and manufacturing activity, and a diminishing trade imbalance as U.S. exports are bolstered by energy. Housing represents a risk factor, particularly if interest rates shoot higher again, underscoring how se…

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…

Global market mid-year outlook

Mark Burgess, Chief Investment Officer, Threadneedle Investments | June 16, 2014

…S.?  What will happen in emerging markets as policy is normalized?  Will corporate profits drive equity markets higher? Bond markets in recent months have presented us with a conundrum — indeed we held an ad-hoc meeting in mid-May to discuss the meaningful decline in core government yields. In the U.S., our expectation is that gross domestic product (GDP) growth will be in the order of 2.5% this year and that the overall macroeconomic picture…

Global Asset Allocation Outlook (June 2014)

Columbia Management Global Asset Allocation Team, | June 30, 2014

…at this point. Within U.S. we upgraded small-cap stocks from an underweight to a neutral position. Small-cap stocks sold off sharply in the first few months of the year and were down nearly 10%. Going forward, we expect small caps to perform in line with large caps. The U.S. economy shrank more than expected in the first quarter but incoming data in the second quarter points to a rebound in growth. Earnings in the first quarter also came in ahead…

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…