Wallflower Value Stocks Are Ready to Dance

Chris Marx

Global equities are notching new highs, valuations are elevated and talk of market bubbles is increasingly common. Yet, by our measure, the potential for outperformance in value stocks has rarely been better. How can that be?

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Endowments and Foundations: Should a Windfall Change Your Investment Policy?

Brian D. Wodar

Brian Wodar and Ashley Velategui

Board members at Uptown Community Foundation (UCF) faced an enviable dilemma: what to do when an unexpected bequest boosted UCF’s capital from $10 million to $12.5 million. One board member welcomed the chance to reduce portfolio volatility by cutting the stock allocation. Another had the opposite view: with increased financial strength, why not take on greater equity exposure?

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Using Genomics to Find Olympic and Investment Gold

Dan Roarty

Dan Roarty (pictured) and Edward Bryan

As the Olympic Games in Sochi draw to a close, a new era for international sports may be beginning. Uzbekistan last month revealed a program to test children’s genes to predict their athletic potential. With genomics becoming more mainstream, we believe investors should take a long-term view and look beyond the traditional companies involved in genetic testing.

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Investing in an M&A Boom

James T. Tierney, Jr.

Equity markets got off to a rough start in 2014, but a resurgence of corporate dealmaking has given investors reason to cheer. With executives’ confidence increasing, and companies sitting on a mountain of cash, we think that the stage has been set for a sustained recovery of US takeover activity.

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Equity Markets: How Much Energy Does the Bull Have Left?

Kurt Feuerman

After another big year for stocks in 2013, many investors are questioning how much longer the bull market can run before it collapses from exhaustion. This doubt has intensified with the early 2014 selloff. However, based on what we see, it’s not time to worry about the market’s stamina yet.

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Don’t Pull the Plug on US Stocks

Joseph G. Paul

Investors are wondering whether the bull run in US equities is over. With the economy gathering steam and interest rates likely to head higher, we think stocks are still the best game in town—and value stocks neglected in the recent rally look even better.

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Bond History: Rhyming, Not Repeating

Douglas J. Peebles

When the Fed does eventually start raising interest rates, at AllianceBernstein we don’t expect to see bonds experiencing the dire scenarios of 1981 or 1994. Instead, the 2003–2006 period of slow and measured rate normalization seems more likely. But it’s not a perfect match, and we do see some important investment factors to consider.

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High Yield: The Perfect Storm That Wasn’t

Gershon Distenfeld

In a year when the US Federal Reserve caused jitters over quantitative easing, the US government endured a shutdown and investors shifted focus to equities, it’s no surprise that pure “duration-sensitive” bonds like US Treasuries had negative returns as interest rates spiked. But high yield emerged relatively unscathed, returning over 7% for the year.

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The Path to Becoming an Emerging Market

Henry S. D'Auria

By Henry D’Auria (pictured) and Morgan Harting

Why have some equity markets in the developing world flourished more than others? It’s a pivotal question for investors hoping to stake an early claim to the potential emerging-market (EM) success stories of the next decade. 

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Back to the Future: What Time Is It for Bonds?

Douglas J. Peebles

Investors often ask us how they should think about bond markets in a time of rising yields. Are we facing a situation similar to 1994? Or worse, could it be like 1981, when five-year US Treasury yields soared to 15%? Our answer often surprises them: we don’t think it’s either.

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