Perspectives Blog

Time, not timing

Columbia Management, Investment Team | November 26, 2013

Historically, some of the worst short-term market fluctuations and losses were followed by periods of substantial market recovery. Investors who try to time market swings often end up missing out on the market’s best days. Asset allocation, diversification and periodic rebalancing are tools investors can use to help weather market downturns. Sometimes the best selling strategy for investors may simply be — don’t. Focus on buy and hold for the…

Second quarter asset allocation positioning

Columbia Management, Investment Team | May 14, 2013

…crises. In a low growth environment, we continue to favor high-yielding dividend-paying, defensive stocks with some potential for capital gains. We also continue to advocate caution in portfolio allocations and emphasize risk diversification. Search for yield remains strong in fixed income We made no material changes to our fixed-income positioning during the first quarter of 2013. In general, our portfolios remain overweight in investment-grade a…

Big picture supports allocating risk to equities

Jeffrey Knight, CFA, Head of Global Asset Allocation | October 25, 2013

In the current environment, focusing portfolio risk on equities is a sensible approach. Given policy uncertainties in the U.S., we think it’s time to incorporate more international diversification. Fixed income markets are once again relevant in the search for diversification, along with unconventional diversifiers like absolute return funds. Watch: Investment Strategy Outlook Q4 2013 See more Market Insights from Columbia Management…

Time for a change

Columbia Management, Investment Team | July 23, 2013

…mance. These are key reasons investors work with financial planning professionals — the experience and know-how to pursue financial goals with a sound, disciplined investment strategy. Heightened uncertainty calls for broader diversification With elevated risk in both the stock and bond markets, investors may be tempted to sit on their cash. Then again, their financial and retirement goals haven’t gone anywhere and there’s a cost to doing nothing…

Should your income be fixed?

David King, CFA, Senior Portfolio Manager | December 16, 2013

…defining quality bonds, even temporarily, as highly predictable assets without an adequate return profile immediately casts traditional portfolio construction views into question. Quality bonds continue to provide statistical diversification, which could be reason enough to maintain some exposure, but the goal of most portfolios is not predictable, inadequate returns. Is this a case where diversification is really di-worse-ification? The question…

Opportunities in global infrastructure

Peter Santoro, Senior Portfolio Manager | February 3, 2014

Infrastructure investments may offer stable cash flows and diversification from more cyclical investments Infrastructure investments span the emerging and developed markets across many industries Today’s current market environment offers unprecedented opportunities for well-resourced investors Infrastructure represents the foundation for our day-to-day lives—the societal staples we rely on. And the stable fundamental demand drivers of infrastr…

Stormy conditions in Puerto Rico

Columbia Management, Investment Team | June 25, 2013

Puerto Rico’s weakening fiscal and economic condition presents serious concerns for municipal bond investors. Investors are attracted by the portfolio diversification and triple-tax-free benefits of certain Puerto Rico debt obligations, but the credit challenges are significant. We believe that rigorous research is essential to identify those opportunities that feature investment-grade characteristics. In December 2012, we expressed concern ab…