Perspectives Blog

Thoughts on navigating market volatility in today’s technology markets

Rahul Narang, Senior Portfolio Manager | April 28, 2014

…s. Is history repeating itself? We have seen volatility in this space before. For example, Salesforce.com, a bellwether “Cloud or SaaS” company, experienced 50%+ intra-year stock declines in each of its first five years as a public company, though it is up 14-fold since its IPO. Internet sector Similarly, there has also been a significant sell-off in the Internet space over the last few weeks with many stocks down 20% or more. The business model…

Obamacare’s insurance exchanges

Columbia Management, Investment Team | December 9, 2013

…tial targets. The federal government is running the insurance exchanges for many Republican-led states that have declined to build their own exchanges; there are 17 state exchanges. Not surprisingly, initial enrollment on all public exchanges has skewed heavily toward Medicaid and the less healthy. Underrepresented are young, healthy individuals needed to fill risk pools forecast by government actuaries. A number of states are rolling beneficiari…

How bad is China’s credit crisis?

Weili Jasmine Huang, Senior Portfolio Manager | February 3, 2014

…continue the financial market liberalization reform. However, it seems like the central government took that safest near-term route by avoiding any contagion risk and significantly reducing potential losses, particularly for public investors. In the absence of a comprehensive framework for the treatment of inevitable further losses in these vehicles, that path seems prudent. Will there be a financial meltdown in China? There are some important r…

Biotech’s beneficiaries: How outsourcing is improving the sector and spreading the wealth

Aaron Reames, Senior Equity Analyst | February 24, 2014

Conditions favor biotech outperformance of broader markets for at least a few more quarters. Outsourcing offers biotech firms varied advantages, from cost reduction to enhancing credibility. The sector’s success and the outsourcing trend is fueling ancillary businesses, notably specialty REITs, CROs and research tools companies. As biotech indices continue to surpass all-time highs, one must contemplate if there is additional room to run. We c…

Municipal market ghosts of past, present and yet to come

James Dearborn, Head of Municipal Bonds | December 9, 2013

December 3, 2013 — a seminal day in muni pension discussion. Ghost of Christmas Past – good times were had by all. Ghost of Christmas Present – sobering reality as negotiations continue to go nowhere. Ghost of Christmas Yet to Come – rising above the Detroit debacle. In the annals of public finance history, December 3, 2013, will likely be remembered as a seminal day in which the nature and direction of debate about large unfunded pensio…

A tepid cyclical lift

Tom West, Director of Equity Research | April 28, 2014

Cyclical investment and discretionary spending are on track to deliver earnings growth of 7% in the S&P 500. Strength in some consumer durables appears more of a “wallet share” gain than a general lift due to recovering wages or a release of excess savings. Construction and energy are poised for another year of growth, while “enterprise” spending and investment in the tech sector remain challenged. The S&P 500 Index should grow earning…

From tactical to core – The case for emerging market debt

Columbia Management, Investment Team | June 2, 2014

…an investment grade asset class Source: Barclays U.S. EM Sovereign & Quasi-sovereign as of 4/30/2014 Many investors had been increasing their EMD holdings, recognizing their fairly low allocations to EMD relative to the sector’s capitalization and economic importance. However, investor confidence in the sector and its attractive risk-return proposition was unexpectedly tested last year. Yields on EMD and corporate credit, which historically…