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
Global Perspectives offers global economic, market and investment commentary on Monday morning of each week.
High-quality short-term bond funds can provide attractive returns for investors seeking a conservative investment option in today’s uncertain interest rate environment. Not all short-term bond funds are created equal. Some managers take reasonable, well-diversified risks; others may be tempted to chase yield, with the results being risks that may exceed investor tolerance. Know what you
Despite a disappointing last five years, the structural growth drivers that have long made emerging markets an attractive area in which to invest are as compelling as ever. While emerging markets may be a single asset class, they are anything but homogenous. This provides opportunity for active investors to seek out higher returns. There are
The near-zero interest rate environment has been a support for the financial markets, but as the economy normalizes so will interest rates. While we expect the bull market in equities to continue, returns will likely be far more modest over the next 10 years. For bonds we can expect returns in the range of 2%-3%
It is unclear if recent improvements in U.S. labor market data are due to less slack or government-related measures to support worker income and benefits. Occupations with some scarcity of qualified labor have seen some wage pressures, but the gains are likely due to one-time minimum wage hikes. A more spirited pickup in overall wage
Watch Zach Pandl, portfolio manager and strategist, explain what the end of the Fed’s Quantitative Easing program means for investors. QE is over because it succeeded, which is good news. With cash yields still close to zero, staying invested is critical to maintaining purchasing power. Although we still think there are opportunities in the bond
30 years equals about 11,000 days. One might assume that eliminating a few of those days would have little impact on investment performance during that time. Yet, if the ten best days of the S&P 500 Index for the period 1983- 2013 are excluded, the average annual return drops from 8.40% to 5.80%. If the twenty