Contrarian Investing and the US Auto Rebound
Kevin Simms and Ajit Ketkar When US auto sales were in the dumps three years ago, an investor predicting a rebound was considered about as credible as a used car salesman. Today, a bumper year for car sales is providing a great example of the enduring principles of long-term investing.
read moreUS Stocks: Third Time’s the Charm
At 1550, the S&P 500 has regained the peak it reached in March of 2000 (when the tech bubble burst) and again in October of 2007 (before the credit crunch hit). But we think the third time’s the charm: We think the stock market still has room to rise because equities are now more attractively [...]
read moreFive Key Themes for Equity Investors
Equity markets have started to perk up in early 2013, yet lackluster economic growth is posing a challenge to corporate profitability. In this promising but complex environment, we’ve identified five key themes for equity investors that are worth watching as the year unfolds.
read moreGlobal Real Estate Stocks—Time to Get Out?
Real estate stocks have now rebounded from the crash during the global financial crisis. But we think valuations are still reasonable, especially as property fundamentals continue to improve in key markets.
read moreHow Much Risk Does Adding Stocks Pose?
Investors have good reasons for their recent net increase in stock fund purchases—and good reasons to remain anxious, in our view. While market volatility has returned to normal, memories of the wild market swings of the past five years loom large. Here’s what we think about the risk of increasing stock exposure now.
read moreNo Need to Fear China’s Housing Crackdown
Stuart Rae and John Lin New measures to cool China’s housing market have triggered fresh volatility and stock declines across Asia. But we think the latest government moves won’t derail the long-term drivers of Chinese real estate growth.
read moreIs It Time to Get Back into Stocks—or Too Late?
After five years of fleeing stocks for the perceived safety of bonds, US mutual fund investors became net buyers of stock funds in January. While some see the return of the retail investor as a negative indicator for stocks, we say, “Better late than never.”
read moreFinding Value in Australian Equities
Investors in Australia have piled into defensive stocks since 2010, amid a global flight to safety. As a result, many cyclical companies are now unusually cheap, despite strong balance sheets and cash flows, and this has created a compelling opportunity.
read moreTo Reduce Your US Tax Bill, Keep Dividends Qualified
Paul Robertson and Tuppence Russo The recently passed American Tax Relief Act (ATRA) raised the top tax rate for qualified dividends, but it scarcely affected the benefit this rate provides to investors. That’s because ATRA also raised the top tax rate on ordinary income—the rate investors have to pay for nonqualified dividends—by nearly as much.
read moreUK Equities Reach Inflation Tipping Point
Jon Ruff and Patrick Rudden As UK inflation surges ahead, equity investors should be concerned. With yields on inflation-linked bonds at extreme lows, we think real assets offer a better way to combat the risk of rising prices.
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