Perspectives Blog

Inflation — The usual suspects

Zach Pandl, Portfolio Manager and Strategist | August 11, 2014

…2% in 2010 to 0.8% as of the first quarter of this year (unweighted average of gross domestic product (GDP) deflator inflation for the countries shown in the next chart). We think this slowing very likely reflects the second eurozone recession and the resulting increase in slack in labor and product markets. This point comes across most clearly when looking at the differences in inflation across countries. Exhibit 2 shows inflation in the GDP pr…

Global Asset Allocation Outlook (as of February 24, 2014)

Columbia Management Global Asset Allocation Team, | March 10, 2014

…luations in relation to large caps. European countries presented a slightly different picture with core economies such as Germany and France deteriorating, while those on the periphery of the continent improving. Overall, the eurozone declined somewhat on our scorecard as earnings growth weakened. Ever since the speech by European Central Bank President Mario Draghi which promised to do “whatever it takes” to support the monetary union, European…

What to make of the rebound in emerging market equities

Dara White, Senior Portfolio Manager | April 14, 2014

…10 and have stagnated at or below zero in recent quarters. The developed world (the core of the export consumer market) is recovering, but it has been an anemic recovery. U.S. growth has not broken out of the 2%-3% range, the eurozone is no longer contracting but expectations are for growth of only about 1%, and there are questions regarding Japan’s ability to sustain any growth rebound with the introduction of the new consumption tax. So EM grow…

Harvesting a New Moderation in Asia

Soo Nam Ng, Head of Asian Equities | June 23, 2014

…ex Japan Index tracks the performance of equity securities in eleven countries in Asia, excluding Japan and taking into account local market restrictions on share ownership by foreigners. The EURO STOXX 50 is a stock index of Eurozone stocks designed by STOXX, an index provider owned by Deutsche Börse Group and SIX Group. International investing involves increased risk and volatility due to potential political and economic instability, currency f…

Emerging Markets: Waiting on exports

Anwiti Bahuguna, Ph.D., Senior Portfolio Manager | March 31, 2014

…oup Part of the reason for the sluggishness of EM exports is the subpar nature of global growth. True, the developed world is recovering, but it has been a weak recovery. U.S. growth has not broken out of the 2%-3% range, the eurozone is no longer contracting but expectations are for growth of only about 1%, and there are questions regarding Japan’s ability to sustain any growth rebound with the advent of the new consumption tax. Global growth ha…

Special report – 2014 mid-year review and outlook

Columbia Management, Investment Team | June 16, 2014

…of rates. In addition, slower global growth and rising geo-political risks present downside risks to growth, although supportive central bank actions will continue and perhaps accelerate, particularly in Japan, China and the eurozone. Taxable bonds Colin Lundgren, Head of fixed income Review: 2014 has been a happy new year for taxable fixed-income investors. After experiencing mostly negative total returns in 2013, the surprising combination of…

Asset allocation November 2013

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | December 12, 2013

…ue to favor absolute return strategies. 2. Remain underweight U.S. equity allocations mainly on relative valuation (limited near-term upside). Better opportunities in select international equities. 3. Continue to favor UK and eurozone on better economic momentum; short-term valuations have run up a bit but still supportive longer term. 4. Continue to favor Japan on favorable monetary and macro conditions; earnings momentum has waned of late. 5. D…