Perspectives Blog

Interpreting the bond rally from a multi-asset perspective

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | June 2, 2014

…opposite conditions. In fact, with bond yields having broken through to new lows (as of May 28), we observe that stock prices remain at record high levels, credit spreads are as tight as they have been all cycle and volatility across stock, bond and currency markets is notably subdued. Exhibit 2 Source: Bloomberg. Data as of 05/28/14 There is another difference that matters. Since bond yields ended 2013 at their highest level in years, the initi…

The new tax regime and stock compensation

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

…yroll and ordinary income taxes. The most well-known stock compensation program involves grants of non-qualified stock options (NQSOs). The grants are issued with a specific exercise price. Most NQSOs do not become compensation until the employee has reached a vesting period and elects to execute all or a portion of a stock option grant. At execution, the spread between the stock option exercise price and the fair market value becomes compensatio…

Is a stock market correction coming?

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

Thoughts on navigating market volatility in today’s technology markets

Rahul Narang, Senior Portfolio Manager | April 28, 2014

We are seeing a market rotation from momentum to value on macro factors and internal market dynamics. Keys are to stay diversified, look for businesses with strong moats and that produce solid cash flow and compare to historical valuations. Favored themes are industry consolidation plays, mobile and Internet. In recent weeks there has been a dramatic shift in alpha generation from hyper growth technology stocks to more value-oriented names. We…

Has dividend investing lost its luster?

Columbia Management, Investment Team | May 12, 2014

Higher-yielding equities underperformed the market last year raising questions about whether dividend investing remains an attractive strategy. Even if rates continue a long-term increase from current levels, we expect that equities sensitivity to rising rates will decline. We believe the drivers that have resulted in historical stock market outperformance from high-yielding equities remain intact. By Paul Stocking, Senior Portfolio Manager an…

October — It always seems to happen in October!

Ted Truscott, CEO, Global Asset Management | October 20, 2014

Markets are now asking what happens if growth slows again in the U.S. and/or weak and slowing growth in Europe, Russia and China drags down U.S. and U.K. growth? The stock market downturn is a reaction to changes in growth expectations and the volatility of that growth. Market assumptions for steady growth did not necessarily account for all the other risks. While we continue to see equities as an important pillar of longer term allocation stra…

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

Dan Ison, Portfolio Manager | January 13, 2014

…ive) earnings forecast stands at 10% for 2014. European profits have a long way to catch up with other developed markets, and it is primarily for this reason that we remain confident that European equities will show further good returns to investors in 2014. Finally, we believe 2014 will conducive for active management and we expect the market will amply reward active stock pickers over passive investing. *Threadneedle International Limited is an…