Are High-Yield Stocks in Bubble Territory?

Investors have been flocking to high-dividend-paying stocks, lured by their predictable, bondlike income and downside defenses. But investors may be getting more risk than they bargained for.

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What Can US DC Plans Learn from the Rolling Stones?

When it comes to constructing the perfect defined contribution (DC) plan, sponsors and participants both might benefit by taking a page from the Rolling Stones’ famous line: “You can’t always get what you want, but…you get what you need.”

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Tax Cliff Enhances Potential Benefit of Roth IRA Conversion

With US federal tax rates poised for a potential hike next year, now is a good time to consider converting retirement assets to a Roth IRA. Conversions are now available to all investors, with no income ceiling in place.

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Bank of England Still Aiming at the Wrong Target

The UK is celebrating a near three-year low in consumer price inflation, but we think the Bank of England (BOE) should be more worried about the role that money and credit play in the inflation process.

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Collapse in UK Investment Income Is Cause for Concern

A collapse in direct investment income was the main factor behind the UK’s record second-quarter current account deficit. It’s too early to know whether this represents a permanent shift. But, if it does, it would make rebalancing the economy more difficult and have important implications for the pound.

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No Manipulation of US Jobs Data, but the Numbers Are Noisy

In the heat of a US election season, the sharp drop in September’s unemployment rate raised some eyebrows. I think it is blatantly wrong to argue that government statisticians manipulated the data. But the jump in household jobs that triggered the drop in the unemployment  rate was indeed extraordinary and requires further scrutiny.

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Finding Economies of Scale in Solar

By Catherine Wood and Brett Winton Advocates of solar energy have argued for years that the industry only needs subsidies to gain the economies of scale that would make it cost competitive. We think that day may never arrive.

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If It’s All About Macro These Days, Why Haven’t EM Stocks Done Well?

It doesn’t seem to make sense. Superior macroeconomic fundamentals in emerging countries have not led to stronger—or even positive—equity returns over the last two years. Since the beginning of 2011, the unhedged return in US dollars of the MSCI Emerging Markets (EM) Index has been (10)%, while the MSCI World Index has delivered 6.5%. What’s [...]

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Preparing for the Tax Cliff Ahead: Diversifying Concentrated Positions

With US tax rates potentially rising sharply in January, now is a good time to consider taking gains on concentrated stock positions and exercising stock options.

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Euro-Area Interest Rates: To Zero and Beyond?

There has been some speculation that the European Central Bank (ECB) may soon push its deposit rate into negative territory.

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