Search results for: construction

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Building better portfolios in a low return world

The near-zero interest rate environment has been a support for the financial markets, but as the economy normalizes so will interest rates. While we expect the bull market in equities to continue, returns will likely be far more modest over the next 10 years.

Tagged with: Asset Allocation, Equities, Fixed Income, Investing, Markets

Labor friction — The latest chapter in the globalization and automation story

Labor friction occurs when the location and skillset of workers doesn’t match up with the location and skills required for the open positions. Technology, engineering and planning are being used to reduce on-site labor in one region and replace it with either a manufactured solution or labor from a lower cost region.

Tagged with: Industry/Sector Commentary, U.S. Economy

Harnessing Fixed-Income Returns Through The Cycle

There are four unique, major fixed-income risks – duration, credit, inflation and currency – and different fixed-income investments respond to them differently. Applying a full understanding of the four risks to a fixed-income portfolio may yield a better risk-return outcome.

| | Tagged with: Asset Allocation, Fixed Income, Interest Rates, Investing, Portfolio Strategies

Demographics — Inexorable trend, inevitable outcome?

Demographic change is likely to have a profound impact on financial markets, and investors can use demographic analysis to point the way to the most worthwhile areas for further research. The most significant impact on investing will be the gradual migration from traditional country-based asset allocation models to those based on exposures to demographic trends.

Tagged with: Global Investing

A very, very, very, very Black Swan?

Investors should understand the risks in their portfolio, and be cognizant that black swan events can occur much more frequently than models suggest. Risk models are extremely helpful when thinking about portfolio construction, but shouldn’t be relied upon exclusively.

Tagged with: Economy, Global Economy, Global Perspectives

India’s new government fires investor enthusiasm

The landslide victory of the pro-business Bharatiya Janata Party (BJP) has transformed investor sentiment towards India. As the new government puts its stamp on policy, it will create investment opportunities not only in the domestic economy but also in sectors exposed to government-led reform.

Tagged with: Global Economy, Investing

U.S. housing — A positive signal amidst the noise

While there has been a broad slowing in the last 15 months, the U.S. housing market has stabilized and started to recover. Homebuilders are catering to upscale buyers where financing is less of a constraint, and also building larger and more expensive homes.

Tagged with: Economy, U.S. Economy

The U.S. labor market — Show me the money

It is unclear if recent improvements in U.S. labor market data are due to less slack or government-related measures to support worker income and benefits. Occupations with some scarcity of qualified labor have seen some wage pressures, but the gains are likely due to one-time minimum wage hikes.

Tagged with: Economy, U.S. Economy

2015 capital market assumptions: Mid-year update

We retain very modest expectations for total returns from traditional fixed-income assets. Equity returns appear attractive relative to fixed-income returns but are accompanied by much higher volatility, including periods of harsh drawdowns.

Tagged with: Asset Allocation, Economic/Markets Outlook, Equities, Fixed Income, Global Investing, Investing, Portfolio Strategies

Waiting on wages

The latest wage data is mixed, with some measures pointing higher while others appear quite sluggish. Wages in the goods producing industries have been hit particularly hard due to the energy and export/dollar impact, although service industries appear insulated. 
It seems likely that the Fed will await more convincing evidence that global factors have run their course and allow the normal relationship between falling unemployment rates and tighter labor markets to strengthen.

Tagged with: Economic Policy, U.S. Economy
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About Us

Columbia Threadneedle Investments is a leading global asset management group that provides a broad range of actively managed investment strategies and solutions for individual, institutional and corporate clients around the world. With more than 2,000 people, including over 450 investment professionals based in North America, Europe and Asia, we manage $503 billion†† of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.

††In U.S. dollars as of June 30, 2015. Source: Ameriprise Q2 Earnings Release. Includes all assets managed by entities in the Columbia and Threadneedle groups of companies. Contact us for more current data.