A Nice Problem to Have (and Some Partial Solutions)

Paul Robertson

 Paul Robertson and Tara Thompson Popernik

Many taxable US investors will face higher capital gains tax bills for 2014 than for 2013, although market returns are likely to be more modest. The reason isn’t higher tax rates: US tax rates were up in 2013, too. The reason is large capital gains and limited losses.

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What’s the Safest Investment Strategy?

Seth J. Masters

Seth J. Masters and John McLaughlin

Many investors with little appetite for risk think cash is the safest asset class. After all, if you have no investments, you have no investment risk. That’s true enough, but it’s reassuring only if you ignore inflation and taxes.  And of course, most individuals do pay taxes and everyone experiences inflation.

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History and Policy Point to Renminbi Rally

Hayden Briscoe

Many investors are worried about the future path of the Chinese currency after its sharp depreciation earlier this year. Based on fundamentals and the expectation that China will stick to its foreign-exchange policy, we think the currency has reached a fork in the road and is likely to rally.

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In EM, Beware Commodity Riches Without Policy Smarts

Fernando J. Losada

By Fernando Losada (pictured) and Alexander Perjessy of AllianceBernstein (NYSE:AB)

Fixed-income investors often divide emerging markets into commodity exporters and commodity importers. We think this overlooks an important reality: commodity wealth is not the sole—or even the most important—driver of EM performance.

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Finding Fashion in Asian Small Caps

Liliana Castillo Dearth

Investors looking for the kind of growth that up-and-coming smaller companies can deliver can’t afford to ignore Asia. We see exciting niche opportunities there—but finding them requires patience and on-the-ground expertise.

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Can Real Estate Stocks Cope with Rising Rates?

Eric Franco

After a sharp five-year rally in US real estate stocks, investors are questioning whether they may be vulnerable to a rise in interest rates. Our research suggests that global real estate stocks may be more likely to weather a changing rate environment.

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What Tax Strategies Make Sense for You?

Tara Thompson Popernik

Many investors adopt tax-reducing strategies from year to year without taking a step back to look at the big picture. But how you save or spend money today can have a profound impact on your after-tax wealth over the long term and, ultimately, on your legacy.

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Draghi Sharpens “Three Arrows” for Europe

Darren Williams

When the European Central Bank’s Governing Council convenes tomorrow in Frankfurt, there will be plenty of talk about Mario Draghi’s recent speech at Jackson Hole. Not only did this open the door to a large-scale quantitative easing (QE) programme, it may in time be seen as a pivotal moment in the evolution of the euro area’s policy framework as it attempts to fend off the forces of deflation.

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China’s Reforms Open New Path to Equities

Stuart Rae

Stuart Rae (pictured) and John Lin

For investors in China equities, there have traditionally been two ways of approaching the market: through expensive growth stocks, or risky contrarian plays. Now, thanks to China’s reforms, there’s a third way which may offer a better balance of risk and return.

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China’s Property Market: The Risks for Banks

Hayden Briscoe

By Hayden Briscoe (pictured) and Hua Cheng of AllianceBernstein (NYSE:AB)

Despite worries about a collapse in China’s property market, we think the financial system will navigate the coming credit cycle if banks can buy time to resolve loan problems—and receive government support if needed.

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