Search results for: gdp

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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

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

Inflation — The usual suspects

Four factors figure empirically into how and why inflation moves: (1) commodity prices, (2) spare capacity, (3) changes in exchange rates, and (4) monetary policy. These same factors argue for a gradual recovery in U.S. inflation in the year ahead, which could be a headwind for high-quality fixed-income returns.

Tagged with: Economy, Fixed Income

Oil at $70 — How will the markets rebalance?

Lower oil prices should translate into higher demand as a result of cheaper petroleum prices and through higher global GDP growth, which in turn drives oil demand. While there are several factors that could serve to offset this higher demand, we should see some additional demand as a result of lower prices.

Tagged with: Equities, Investing, Markets

Global market mid-year outlook

Overall macroeconomic picture in U.S. should push bond yields higher, particularly if the Fed stops its QE program later this year. We remain positive on emerging market debt while maintaining a bias against emerging market equities.

Tagged with: Economy, Equities, Fixed Income, Global Economy, Investing, U.S. Economy

The beginnings of a new moderation in Asia

The Great Moderation was a period of macroeconomic growth and reduced volatility that provided a backdrop to the strong performance of U.S. equities. The lessons hold relevance for equity investors in Asia as big picture conditions for a Great Moderation are starting to fall into place.

Tagged with: Global Economy, Investing

Slack and inflation

Today’s low unemployment rate indicates modest slack in labor market, which implies earlier Fed rate hikes and/or more inflation risk. The decline in labor force participation in recent years now looks mostly structural.

| Tagged with: Economy, Fixed Income, Investing

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

The price of flexibility

Disruption from the West Coast port strikes is likely to continue for several months. The situation could pressure both sales and margin for retailers ahead of the Easter holiday.

Tagged with: Equities, Global Perspectives, Investing

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
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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 $506 billion†† of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives.

††In U.S. dollars as of December 31, 2014. Source: Ameriprise Q4 Earnings Release. Includes all assets managed by entities in the Columbia and Threadneedle groups of companies. Contact us for more current data.