Perspectives Blog

The new tax regime and stock compensation

Abram Claude, Vice President, Columbia Management Learning Center | October 30, 2013

For many employees in corporate America, a portion of compensation comes from one or more forms of stock option plans. Compensation income from stock incentives contributes to adjusted gross income, but not net investment income for purposes of calculating the new 3.8% tax on net investment income. The Columbia Management Learning Center is dedicating a series of blog articles to this important and timely “Navigating the New Tax Regime” topic….

Is a stock market correction coming?

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

Why we are not expecting a major correction The case for ongoing equity market strength Factors that might bring on a correction With markets near all-time highs and the potential for the Federal Reserve to begin tapering asset purchases, many investors are asking if the next market correction is coming and if it’s time to sell stocks. While we can never know for sure when a correction is coming, at this time we do not expect a large correctio…

Time, not timing

Columbia Management, Investment Team | November 26, 2013

imes the best selling strategy for investors may simply be — don’t. Focus on buy and hold for the long term. Over the past several decades the market has endured: the Iranian hostage crisis, a Savings & Loan collapse, the stock market crash of 1987, the fall of the dotcom stocks, an attack on the United States, two wars and a credit crisis. Investors often make the mistake of trying to time the market by simply selling out of it. But historic…

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…

European equities – Should investors care about periphery vs. core anymore?

Dan Ison, Portfolio Manager | January 13, 2014

The more dramatic the economic reforms, the better the stock market performance in the eurozone We expect nominal growth to be the key driver of an improving earnings picture in Europe European equities should show further good returns to investors in 2014 As we enter 2014 there are the usual questions, conversations and strategy pieces extolling the virtues of different regions and asset classes. 2013 saw a phoenix-like resurgence in interest…

Could tapering be good for stocks?

Fred Copper, Senior Portfolio Manager | December 16, 2013

uction in the pace of quantitative easing, aka tapering. In May, when the Fed first spoke concretely about 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…

Engineering a better retirement portfolio

Columbia Management, Investment Team | June 4, 2013

…hing retirement are waking up to the sobering reality that their nest egg may fall short of being able to comfortably fund their retirement years. The combination of undersaving, low interest rates and a decade of challenging stock markets has created a personal retirement funding deficit that has many struggling to find a way out. Unfortunately, there is no silver bullet. A solution will likely require pulling a number of different levers; worki…