Perspectives Blog

Harvesting a New Moderation in Asia

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

…x tracks the performance of 500 widely held, large-capitalization U.S. stocks. The MSCI All Country (AC) Asia 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 in…

The beginnings of a new moderation in Asia

Soo Nam Ng, Head of Asian Equities | June 2, 2014

…ting point for policy-engineered ‘great moderation’ dynamics to kick in. Current observations in Asia Pacific ex Japan In Asia Pacific ex Japan, the attention to sustainable policies has been generally adequate in the more developed economies of Hong Kong, Singapore, Australia and perhaps also South Korea and Taiwan. More significant is a noticeable shift in the last few years towards a sustainability mindset in its emerging economies. This shift…

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…

Emerging Markets: Waiting on exports

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

…ies are not alone in facing concerns about sluggish exports. Signs of weak global demand are also evident in the Japanese trade data. Despite over 20% devaluation of the yen in 2013, export growth in Japan has been at best modest while their trade balance has deteriorated due to increased cost of imports. A strategy of devaluation-led export growth works only in an environment of strong global demand, one that has yet to materialize in this cycle…

Global asset allocation outlook (August 2014)

Columbia Management Global Asset Allocation Team, | September 8, 2014

…ntral Bank to go back to the drawing board and reexamine the extent of monetary accommodation provided thus far. Japanese equities had a spectacular rise in 2013 and positive earnings revisions had pointed to a fundamental reason to be overweight Japan. Additional support from policies collectively known as Abenomics was expected to provide further support to the Japanese economy. So far this year, the third set of reforms has been disappointing….

When the QE tide recedes, focus on what is revealed

Robert McConnaughey, Director of Global Research | January 6, 2014

…aks and valuations remain fairly forgiving, leaving room for upside against that backdrop of lower expectations. Japan, having suffered through almost two decades of malaise, has reasserted itself on the global stage with the bold economic policies that have become known as “Abenomics.” Abenomics has been described as having “three arrows”: 1) aggressive monetary easing, 2) fiscal stimulus and 3) structural reforms. Japanese markets responded ext…

Asset allocation – Kinetic vs. potential energy

Columbia Management Global Asset Allocation Team, | August 4, 2014

…ets have built up a sizeable reserve of potential energy, which make them candidates for a second half recovery. Japan is one area where we believe the market participants have been exceedingly negative for a long time given its long period of underperformance. Expectations of equity market disappointment are engraved in the investor psyche. Both valuation and our fundamental research point to strong earnings for Japanese companies this year, and…