There were no changes from the previous month. Source: Columbia Management Investment Advisers, LLC. The chart reflects the views of the Global Asset Allocation team as of October 17, 2014. Asset classes are ranked from 1 (overweight) to 5 (underweight), with 3 representing a neutral allocation.
Global Perspectives offers global economic, market and investment commentary on Monday morning of each week.
While QE proved very effective in reinforcing the Fed’s communication about short-term interest rates, there could be simpler ways to achieve the same outcome. The U.S. experience with QE suggests it would be effective in Europe. The Fed ended QE because it succeeded and that’s good news for investors. Last week the Federal Reserve announced
As profitability rebounded from the financial crisis and return on assets improved in 2012 and 2013, the banking industry once again began to outperform. We continue to see growth in commercial and industrial loans as a positive indication for the economy. These loans also provide the growth of assets for the banks. Given their improving
Stock markets rose on the announcement that the government of Prime Minister Shinzo Abe was significantly stepping up its policy actions. The other major announcement was that the Government Pension Investment Fund will shift its asset allocation to domestic equities and foreign bonds/equities away from domestic bonds. The near term risk/return profile currently looks very
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
While consensus suggests a slightly better than average chance of a GOP takeover, battle for control of the U.S. Senate is going to be a dramatically close call. When we examine how a GOP win might affect industries such as energy, healthcare and defense, it’s not as black-and-white as some people might think. One of
The Fed (and all central banks) is highly sensitive to shifts in inflation expectations by either consumers or the markets. The one-year TIP breakeven appears to be pricing in some deflationary pulse and is also pulling down longer term inflation expectations across the curve. My expectations for growth are unchanged at 2.5%-3.0%, but I am