Can the US Become a Magnet for Manufacturing?

It’s been a long time since the US has been widely appreciated as a good place for multinational companies to locate new manufacturing plants. Chinese labor is cheap, and emerging markets are increasingly efficient, so why should a global automaker or technology giant choose to manufacture in the US? The answer is because the US [...]

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Is Active Management Dead?

Active equity managers have had an extraordinarily difficult time delivering premiums over the last year, especially managers with a bottom up approach focused on corporate fundamentals. (Active strategies driven by macroeconomic concerns have done better recently.) Here’s why we think active strategies driven by corporate fundamentals are down, but not out—as ably explained by my [...]

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As the Fed Twists, Seize Opportunity to Transfer Wealth

It remains to be seen whether the Federal Reserve can stimulate the economy with its latest “twist” strategy for lowering interest rates, but today’s ultralow rates create one clear opportunity: if you have personal wealth that you intend to leave to family or charity, now is the best time in decades to initiate certain wealth-transfer [...]

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Have Target-Date Funds Lost Their Allure?

A recent article in Pensions & Investments discussed a fund company survey that suggested defined contribution (DC) plan participants aren’t happy with their target-date funds. The survey found that only 22% of participants were “very satisfied” with their target-date investment. The fund company—which isn’t a target-date fund provider—called that “pretty darn low.” But the survey also found [...]

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Beware of Crowded Trades

Trying to avoid a repeat of the last market disaster sows the seeds for the next one. The collapse of large growth companies after the tech bubble burst in 2000 led to strong leadership by small-cap value stocks for many years. And the market plunge in 2008 has led to investors’ crowding into a number [...]

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Bond Strategies for the Age of Government Deleveraging

Hardly a day has gone by in 2011 without fresh headlines about the sovereign-debt woes of Greece and other developed countries. It’s still unclear which path governments will take to resolve their growing debt burdens, but one thing is clear: the path taken to fiscal rectitude will have great implications for fixed-income investors. In our [...]

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Is the 2011 Crisis a Rerun of the 2008 Crash?

The equity market meltdown of the past two weeks has raised widespread fears that we’re headed for a repeat of the wealth destruction seen in 2008. There are certainly some close parallels, but I also see some very big differences in the root causes of the two crises.

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