Search results for: valuations

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Digging deeper for market valuations

When discounted for index composition, U.S. equities are not trading at a significant premium to Europe. One can draw some very misleading conclusions about any disparate group by only looking at the aggregates.

Tagged with: Equities, Investing, Markets

U.S. rates — When the facts change

Prospective returns for Treasuries now look poor across the curve—not just at the front end. Yield curves tend to flatten as central banks raise short-term rates, but valuations have now moved beyond the point where these trades make sense.

Tagged with: Economy, Fixed Income, U.S. Economy

Sic transit gloria funding – Takeaways from GE’s pruning of finance activities

Years of lean capital investment and restrained R&D spending raise concerns that the market might have a higher mix of finely tuned mature businesses and a lower mix of growth businesses. We should look for several points’ worth of cushion when using today’s prices and adjusted earnings and comparing them to prior periods.

Tagged with: Equities, Global Perspectives

What China’s stock market turmoil means for investors

The spotlight China’s stock market turmoil has cast on Chinese central authorities may inspire newfound commitment to reforms.
Powerful technical factors have created significant dispersion of gaps between underlying fundamentals and valuations across markets. For patient investors with the resources and skill to research and investigate these situations, there may be exciting stock-picking opportunities through this “sorting-out” period.

Tagged with: Economic/Markets Outlook, Global Economy, Global Investing, Investing, Markets

What can the Triple Crown teach us about investing?

In horse racing, as in investing, being right is less rewarding if one’s prediction is already reflected in the price. The era of easy money engineered by central banks has succeeded in flattering asset prices, but it is very difficult to identify any assets that are out of favor and inexpensively priced.

Tagged with: Economic/Markets Outlook, Equities, Investing, Portfolio Strategies

Global asset allocation update

Thank you for your continued interest in research and insights from Columbia Threadneedle Investments. Our Global Asset Allocation team continually monitors global economic and market conditions in order to develop our Investment Strategy Outlook. If you would like to subscribe to this publication,  please click here.

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

Interest rates — Farewell, liquidity trap

The U.S. Treasury market as a whole has returned +1% annualized since the end of 2012 (and +0.5% annualized since the low in 10-year yields in July 2012). Because of imminent Fed rate hikes and depressed yield levels, prospective returns look no better today.

Tagged with: Economy, Fixed Income, Investing

Global market outlook

In equity markets, we are generally positive on the major regions except emerging markets, which we continue to underweight. There are some selective opportunities in EM countries benefitting from lower oil prices and where the respective governments have committed to business-friendly reforms.
In bond markets, we see an increasing disconnect between the U.S. and UK, where yields should move higher, and Europe, where the ECB began intervening in secondary markets on 9 March.

Tagged with: Economy, Equities, Global Economy, Global Perspectives

2015 capital market assumptions

We retain very modest expectations for total returns from fixed-income assets based on the low level of yields combined with the expectation that interest rate policy will normalize within the next five years. We believe equities offer returns only slightly below their long-term averages based on expectations of ongoing economic growth and worldwide equity valuations that are not extremely expensive.

| | Tagged with: Asset Allocation, Equities, Fixed Income, Global Perspectives, Investing, Markets

Are equity markets complacent and what can past Fed rate rise cycles tell us about the future?

We are still positive on equities versus other assets, particularly core bonds, although the list of potential headaches for equities is not insignificant and appears to be growing. Japan’s recent progress on the corporate front is a cause for optimism.

Tagged with: Equities, Global Economy, Global Perspectives, Investing, Markets
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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.