Perspectives Blog

Ramifications of Republican romp

Robert McConnaughey, Director of Global Research | November 10, 2014

…iness-friendly policies and a low risk of economically destructive policies being pursued in advance of the 2016 presidential election. In our recent midterm election preview, we said that Republicans were likely to gain control of the Senate in a close contest; we also laid out some possible implications of such a win. As it turns out, we did not give the Republican momentum enough credit, as election night turned out to be a clear victory for…

What to expect from U.S. midterm elections

Robert McConnaughey, Director of Global Research | October 20, 2014

…ollow a GOP win. Regardless of the midterm outcome, the bigger game for both parties is positioning for the 2016 elections. One of the major issues for both parties to address between now and then is their stance on tax reform. Many observers believe that no room for compromise around tax and entitlement reform is likely before the presidential election. However, I do believe that the groundwork for discussion will begin to form and increasingly…

The beginnings of a new moderation in Asia

Soo Nam Ng, Head of Asian Equities | June 2, 2014

…uch as below 6.0%). There are also encouraging developments elsewhere in Asia Pacific ex Japan. In India, Modi’s election victory on the back of his 14-year scorecard in Gujarat speaks of electorate demands for politicians to deliver sustained growth(3). Indonesia’s opinion polls are predicting a victory for Joko Widodo in the July presidential polls. His popularity stems from a brilliant track record running Surakarta (2005-2012) and Jakarta (si…

Not all emerging markets are created equal

Robert McConnaughey, Director of Global Research | January 27, 2014

…an important year on the reform front – execution of the Chinese reforms are obviously on the market’s mind, but presidential elections in India, Brazil, South Africa, Indonesia, Turkey and possibly Thailand have the potential to increase volatility, but also open a window for reforms to gain momentum if the ruling party wins with a strong mandate. On the point of reforms, abundance and hope of continued growth seem to have bred complacency in ma…

India’s new government fires investor enthusiasm

Natasha Ebtehadj, Fund Manager, Threadneedle International Limited | September 8, 2014

The landslide victory of the pro-business Bharatiya Janata Party (BJP) has transformed investor sentiment towards India. As the new government puts its stamp on policy, it will create investment opportunities not only in the domestic economy but also in sectors exposed to government-led reform. We believe the new government could enact much needed reforms to stimulate investment and unlock India’s economic potential. India’s economy has been w…

What to make of the rebound in emerging market equities

Dara White, Senior Portfolio Manager | April 14, 2014

Despite continuing headlines of concern, EM markets have rebounded recently. In order to sustain that rally, we need to see progress on export volumes and political/economic reforms. While not universally cheap, EM equity valuations are not unreasonable and we continue to find bottom-up opportunities. A month ago, much of the news from the emerging markets (EM) was negative. We saw headlines highlighting the liquidity headwinds created by U.S….

The new tax regime and stock compensation

Abram Claude, Vice President, Columbia Management Learning Center | November 15, 2014

…t plans, including a non-qualified deferred compensation plan? Remember that non-qualified deferred compensation elections must be made in the prior year, so elections for 2015 must be made in 2014. For more detailed considerations around deferring compensation and increasing tax-deferred investments, see “Maximizing workplace retirement plans to reduce or eliminate the net investment income tax.” Finally, it’s important to recognize…