Perspectives Blog

Emerging Markets: Waiting on exports

Anwiti Bahuguna, Ph.D., Senior Portfolio Manager | March 31, 2014

…d some to question whether EM economies have lost relative competitive advantage and market share. In late 2012, Robert McConnaughey, Director of Global Research, argued that one should not dismiss the relative strengths of U.S. competitiveness. Low cost production from emerging Asia was a threat to U.S. businesses, but American businesses adapted to the environment, using outsourced labor and overseas capital deployment as an asset to improve co…

Special report – 2014 mid-year review and outlook

Columbia Management, Investment Team | June 16, 2014

…rns for taxable fixed-income investors, the second half of the year may generate “coupon less” returns. Equities Robert McConnaughey, Global research director Review: Year to date through May, the U.S. major market indices are up low-to-mid single digits. Overall market volatility has been very low by historic standards and has trended down through the year. Beyond the high level averages, 2014 has seen some violent moves at a factor and industry…

Finding opportunity in Chinese reforms

Robert McConnaughey, Director of Global Research | June 16, 2014

We continue to be excited about the opportunities to position in emerging markets ahead of positive change where market uncertainty still exists. Chinese corporate level governance reforms may be fertile ground for undiscovered investment opportunities. The scope and pace of China’s reform will have significant influence on the global economy and should be monitored closely. I spent last week in China, meeting with corporate management teams,…

Finding opportunity in Japan’s recovery

Robert McConnaughey, Director of Global Research | September 29, 2014

In Japan, there is general optimism for a steady economic recovery, with a prevailing sense of confidence in reasonable valuations and a low bar for incremental improvement. Companies that can take advantage of global business opportunities look far more attractive than those simply waiting for a rising national tide to lift their boats. A re-allocation towards riskier assets from the national pension funds and insurers would create very large…

Digging deeper for market valuations

Robert McConnaughey, Director of Global Research | December 1, 2014

When discounted for index composition, U.S. equities are not trading at a significant premium to Europe. One can draw some very misleading conclusions about any disparate group by only looking at the aggregates. Those who draw broad conclusions based on index valuations may be creating opportunities for those who can dig deeper for them. Nobody buys a house without looking inside. And nobody should make investment decisions without doing their…

Not all emerging markets are created equal

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

We see emerging markets shifting from an environment of common thematic tailwinds to one of more idiosyncratic outcomes We believe that painting all emerging markets with a broad brush is a mistake We examine some of the key factors in uncovering EM investment opportunities Emerging markets (EM) is a term given to a universe of countries that is extremely diverse across a wide number of variables including geography, levels of industrializatio…