Q: What indications did you observe that pointed to the recent market volatility storm? A: In our adaptive risk allocation framework, one of the key first level characterizations we make on markets is whether interest rates are normal or too low. Instead of rising as most expected, interest rates moved lower and lower this summer.
Insights on current market events and investment opportunities.
There were no changes from the previous month. Source: Columbia Management Investment Advisers, LLC. The chart reflects the views of the Global Asset Allocation team as of October 17, 2014. Asset classes are ranked from 1 (overweight) to 5 (underweight), with 3 representing a neutral allocation.
The net investment income tax (NIIT) is a new, permanent tax that began in 2013. Investors’ workplace retirement plans, such as 401(k) plans, may offer several opportunities to reduce exposure to the tax. The Columbia Management Learning Center is dedicating a series of blog articles to this important and timely “Navigating the New Tax Regime” topic.
California is in its fourth year of drought, one of the worst in the past century. Key factors when assessing credit quality of water utilities are water supply and source diversity. Credit strength of California water utilities hinges on political willingness to raise rates. Potential impact on California-specific and national muni bond funds. California is
The Net Investment Income Tax is a permanent tax that became effective in 2013. Investors who break a certain modified adjusted gross income threshold may face a 3.8% surtax. This tax is in addition to any ordinary income or long-term capital gains tax obligations. The Columbia Management Learning Center is dedicating a series of blog articles
While QE proved very effective in reinforcing the Fed’s communication about short-term interest rates, there could be simpler ways to achieve the same outcome. The U.S. experience with QE suggests it would be effective in Europe. The Fed ended QE because it succeeded and that’s good news for investors. Last week the Federal Reserve announced
As profitability rebounded from the financial crisis and return on assets improved in 2012 and 2013, the banking industry once again began to outperform. We continue to see growth in commercial and industrial loans as a positive indication for the economy. These loans also provide the growth of assets for the banks. Given their improving