Perspectives Blog

Time, not timing

Columbia Management, Investment Team | November 26, 2013

…mply be — don’t. Focus on buy and hold for the long term. Over the past several decades the market has endured: the Iranian hostage crisis, a Savings & Loan collapse, the stock market crash of 1987, the fall of the dotcom stocks, an attack on the United States, two wars and a credit crisis. Investors often make the mistake of trying to time the market by simply selling out of it. But historically, some of the worst short-term market fluctuati…

Retail sector outlook – It’s a share game

Mari Shor, Senior Equity Analyst | March 17, 2014

…eason provides a useful prism through which to examine consumer behavior into 2014. On the positive side, comparisons ease as we cycle the payroll tax increase in 2013, and the “wealth effect” (net equity gains in housing and stocks) should drive sustained strength in consumer confidence. Unfortunately, the negatives seem to outweigh the positives with 1) lower levels of growth in disposable income forcing allocations across spending categories;…

Weekly market summary (1/31/14)

Columbia Management, Investment Team | February 3, 2014

…ow investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. The Standard & Poor’s (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks. The Russell 1000 Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Value Index measures the performance…

Quality milestone in the European recovery story

March 17, 2014

Business, economic and political news all point to a strengthening recovery in Europe. We foresee a period of low inflation and low interest rates in Europe. We favor domestic European plays over internationally-exposed stocks, with an overweight stance in banking and telecoms. By Paul Doyle, Head of Europe ex. UK equities and Frederic Jeanmaire, Fund Manager, Threadneedle Investments After 18 consecutive negative months, the flow of eurozone…

Asset allocation: The conundrum of 2014

Jeffrey Knight, CFA, Global Head of Investment Solutions and Asset Allocation | March 3, 2014

…vironment apparently changed, though, with the turning of the calendar to 2014. In the New Year, bonds have performed quite well, with yields on 10-year Treasuries, as an example, falling from 3.03% to 2.67% so far this year. Stocks meanwhile, have been volatile, yet stand close to unchanged on a year to date basis. Source: DataStream, February 2014 There are two good reasons for bond yields to have fallen this year. First, having closed 2013 ab…

M&A in healthcare – Out with the old, in with the new?

Harlan Sonderling, CFA, Senior Healthcare Analyst | March 31, 2014

…se of the countries in which many of the new specialty pharmaceutical conglomerates are domiciled, thus ruining the benefits of low foreign tax rates and the promise of future tax inversions. Specialty pharmaceutical/generics stocks have done remarkably well over the past several years, particularly over the past 12 months, as the companies’ rapid inorganic (acquisition-derived), debt-fueled revenue and earnings growth has been prized. Similar ac…

Weekly market summary – 1/24/14

Columbia Management, Investment Team | January 27, 2014

…ow investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. The Standard & Poor’s (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks. The Russell 1000 Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Value Index measures the performance…