Deleveraging: Were the Fears Overdone?
Monetary policy is an important wildcard, but deleveraging has faded as a headwind for U.S. economic growth and investors would be unwise to weigh it heavily in their investment decisions.
Authored by: Wade O'Brien
European Equities: Time to Focus on the Micro
European Equities: Time to Focus on the Micro European equities trade near a record historical discount to U.S. equities; potential for a turnaround in earnings and improving macro conditions further bolster the case for an overweight position. Europe has faded from the headlines in 2013 as Federal Reserve tapering, Abenomics in Japan, and a slowdown…
Japan: Still Awaiting Confirmation on Fundamentals
Despite the recent sell-off, Japanese equities are up considerably since last October given the promise of Abenomics; however, we remain tactically neutral given valuations and significant structural headwinds.
Leveraged Credit: Losing Upside Potential
Given lower yields, returns on high-yield bonds and leveraged loans are likely to taper off, but in a muddle-through or bear market environment their returns should compare favorably with those of equities.
Single-Family Homes – Time for Investors to Trot Out the Welcome Mat?
Fallout from the credit crisis has meant that investors can now invest in single-family homes on an institutional basis, but those choosing to do so should screen managers carefully and be mindful of the inherent risks.
What To Do About Higher Rates?
Investors worried about rising interest rates have several options; unfortunately, none comes without opportunity costs and implementation challenges.
European Equities: Not Expensive But Not Compelling
European equity valuations are not expensive, but political risks justify a discount and the lack of easy fixes to Europe’s sovereign debt crisis may make volatility a recurring feature of the market.
Can U.S. Corporate Profit Margins Continue to Defy Gravity?
Equity investors are right to be focused on corporate earnings, given that a lackluster recovery and slowing global growth may weigh on sales. However, profit margins may be of lesser concern, due to index mechanics and the limited correlation between margins and returns. S&P 500 companies have enjoyed a stunning rebound in profits since the…
European Update: Kicking an Ever Bigger Can
While recent efforts by European authorities to expand rescue packages for peripheral countries are a step in the right direction, market volatility is likely to remain elevated until more comprehensive solutions are put on the table.
More Than a Passing Fad – EM Bond Funds Deserve Strategic Consideration
Allocations to emerging markets bond funds make sense from a strategic perspective, but the opportunity set offered by this evolving market is not static.