Perspectives Blog

What to make of the rebound in emerging market equities

Dara White, Senior Portfolio Manager | April 14, 2014

Despite continuing headlines of concern, EM markets have rebounded recently. In order to sustain that rally, we need to see progress on export volumes and political/economic reforms. While not universally cheap, EM equity valuations are not unreasonable and we continue to find bottom-up opportunities. A month ago, much of the news from the emerging markets (EM) was negative. We saw headlines highlighting the liquidity headwinds created by U.S….

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…

Opportunities in global infrastructure

Peter Santoro, Senior Portfolio Manager | February 3, 2014

…ize and focus of the global demand for infrastructure, let’s examine some examples of spending trends in Brazil, China, India and the United States. Brazil • In August 2012, the government said it would spend $69 billion by the end of 2014 to improve its transportation systems. • The infrastructure spending for the 2014 World Cup and for the 2016 Olympics in Rio is projected to be around $50 billion. China • Out of 662 cities in China, more than…

Emerging market equities — Still a world of opportunity

Georgina Hellyer, Fund Manager | December 1, 2014

…ent which has suppressed corporate profitability and left many companies with weak balance sheets. A problem for China, yes, but also for countries whose growth was fuelled by China’s voracious appetite for their natural resources. At the same time, emerging markets remain vulnerable to the ebb and flow of global liquidity. The Federal Reserve launched its QE program in 2008 to stimulate the U.S. economy and ward off the threat of another depress…

Special report – Commodity markets outlook

Columbia Management, Investment Team | July 21, 2014

…in commodities. Our significant underweight in copper and aluminium results from the negative news flowing from China, whether it concerns the economy, the housing market or the financial sector. Prices are unlikely to pick up until this negative newsflow abates and there is a change in the demand dynamic in China. However, we would expect that our underweight stance on copper, which we have held for over a year, will have run its course by the…

Special report – 2014 mid-year review and outlook

Columbia Management, Investment Team | June 16, 2014

Key investment professionals review the first half of 2014 and share their insights into what may be ahead for the second half of the year. Interest rates Zach Pandl, Portfolio manager and strategist Review: Government bond yields declined in early 2014, both in the U.S. and in other developed market economies. This surprising change in course after increases in 2013 caught many investors off guard. In our view, declining interest rates reflect…

Income inequality, disinflation and profit growth – the role of globalization

March 10, 2014

Income inequality has tended to rise in both developed and EM. Companies look across the globe to determine where they can manufacture their products at the lowest risk-adjusted cost. We believe that the global unit labor cost arbitrage is likely to continue for many decades. By Marie Schofield, Chief Economist and Toby Nangle, Head of Multi Asset Allocation Last week we discussed rising income inequality in developed markets and the degree to…