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…

Are financial markets priced for secular stagnation?

Columbia Management, Investment Team | December 15, 2014

…ative to the tune of -2% to -3%, the world took notice. A real life example of what Summers means can be seen in Japan over the past 25 years. Growth has been low and inflation absent, despite sustained zero or near zero interest rates, episodes of quantitative easing from the Bank of Japan, as well as large fiscal deficits. Summers leaves to our imagination factors that could push the United States into a similar state; however, we have examined…

2015 Outlook — Same song, slightly different arrangement

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | December 15, 2014

…olicies of other central banks as they double down on efforts to support growth and avoid deflation. The Bank of Japan has announced its intention to increase both qualitative and quantitative easing on an enormous scale, expanding purchases of Japanese government bonds (JGBs), exchange-traded funds (ETFs) and real estate investment trusts (REITs). They intend to coordinate this with government pension investment fund purchases by shifting into r…

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….