High-Yield Bonds: Call Waiting

Ivan Rudolph-Shabinsky

High-yield bonds’ attractive income has made them popular in today’s low-rate environment. But market complacency has caused callable-bond investors to ignore a lurking risk: duration extension in a rising-rate scenario.

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Trouble on the Margin?

James T. Tierney, Jr.

It’s been a very strong earnings season for US companies. But for many, it’s becoming much more challenging to expand profit margins. In a tougher environment, we think investors should focus more closely on revenue growth to find stocks that can thrive.

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Is This Bond for You? Less Liquid, Yields Great

Douglas J. Peebles

Bond investors have historically enhanced their returns by taking on more interest-rate or credit risk. Today, a third opportunity is emerging for investors: the liquidity premium.

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Japanese Equities: Has the Third Arrow Fallen Short?

Katsuaki Ogata

Katsuaki Ogata (pictured) and Takuji Oya

Japanese prime minister Shinzo Abe’s latest blueprint for sustained long-term economic growth was met with quite a bit of skepticism. It’s easy to play down the so-called Third Arrow as an assortment of cryptic reform measures. But we believe that there’s some substance that warrants equity investors’ attention.

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Can You Rely on Income from Equities?

Joseph G. Paul

Joseph G. Paul (pictured) and Greg Powell

In a world of ultralow interest rates, the quest for income has left many investors stumped. Bonds are generally seen as more dependable sources of income than stocks. But our analysis suggests that income streams from equities are much more stable than widely believed.

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Volatility in Retirement—What a Drag!

Chris Marx

Chris Marx (pictured) and Kent Hargis

With markets so calm, it’s easy to become complacent about the corrosive effects that volatility can have on long-term investment success. If you don’t need the money for a long time, you can ride out the inevitable market squalls. But if you’re close to or already drawing from those funds, volatility can be costly.

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US Economy Rebounds—with More Upside Likely

Joseph G. Carson

This week’s US gross domestic product (GDP) data paints a bright picture for the second quarter and a less gloomy first-quarter decline than first published. As impressive as the rebound looks on the surface, we think it’s still understated.

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Rising Rates: The Good, the Bad…No Ugly

Douglas J. Peebles

By Doug Peebles (pictured) and Ivan Rudolph-Shabinsky of AllianceBernstein (NYSE:AB)

The US Fed has said it will almost certainly boost short-term interest rates by 2015, and many bond investors are focused intently on managing the risks of rising rates. But it’s also important to recognize that there are benefits.

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Keeping Up with Innovation

Dan Roarty

The pace of innovation is accelerating and equity investors are increasingly at risk of getting left behind. We think that moving away from the benchmark can help portfolios keep up with rapid change across many industries.

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US Productivity Puzzle Could Lead to Upside Surprise

Joseph G. Carson

A first-quarter productivity slump fueled concerns about the US economy, but second-quarter labor and company earnings data indicate better productivity and underlying growth. In short, the data point to a US economic cycle that’s broader and stronger than it appears on the surface.

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