As emerging markets investors, we like Asia because of its strong reform momentum and the depth of its stock market. Rising interest rates will be good for exports and Asia’s earnings story. Valuations, inflation rates and current accounts are at levels close to where they were from 2001 to 2005, the best period for emerging
Q: What indications did you observe that pointed to the recent market volatility storm? A: In our adaptive risk allocation framework, one of the key first level characterizations we make on markets is whether interest rates are normal or too low. Instead of rising as most expected, interest rates moved lower and lower this summer.
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.
California is in its fourth year of drought, one of the worst in the past century. Key factors when assessing credit quality of water utilities are water supply and source diversity. Credit strength of California water utilities hinges on political willingness to raise rates. Potential impact on California-specific and national muni bond funds. California is
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