Cyprus Averts Disaster, but the Price is High
The European Union’s last-minute deal with Cyprus has headed off bankruptcy for now, but comes at a heavy price for uninsured bank depositors. Meanwhile, the move to impose losses on private creditors and growing complacency among policymakers could be storing up trouble for the future.
Read MoreContrarian 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 valued and of higher quality than they were at previous peaks.
Read MoreLittle Cyprus Sparks Big Contagion Fears
The situation in Cyprus is still very fluid and very serious—perhaps more so than in Greece last year. While the country may be too small to have a meaningful direct impact on the rest of the euro area, the big issue for markets is the potential for contagion to more systemically important countries.
Read MoreDon’t Be Afraid of European High Yield…Be Selective
The European financial crisis continues to challenge high-yield investors. Some were wary of Europe’s issues and stepped away last year, only to see European bonds dominate through the unpredictability. Others want in now, but worry that they’ve missed the rally.
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 MoreHospital “Survivor”: Muni Bondholders Wait to See Who Makes the Cut
To stay solvent, hospitals run a numbers game, charging high prices to patients with private insurance to offset lower payments from Medicare and Medicaid and the uninsured. Some hospitals make a nice profit; others struggle. Now hospitals face a game changer—the Affordable Care Act, which expands Americans’ access to medical insurance but changes the reimbursement rules.
Read MoreUK Budget: No Fiscal Consolidation, but Looser Money Ahead
We expect little change in UK fiscal policy in Wednesday’s budget. Instead the Chancellor George Osborne may try to nudge the Bank of England towards more aggressive monetary easing, putting further pressure on the pound.
Read MoreReducing the Risk from Adding Stock Exposure
Adding other sources of diversification could significantly reduce the risk from increasing stock exposure, our research suggests.
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