Thinking Outside the Emerging-Markets Box

Sammy Suzuki

Forecasting is never an easy task. In the complex and fast-moving world of emerging markets, it’s particularly difficult. We believe investors would benefit from adding a broader approach to their research toolbox.

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Building a Better Passive Mousetrap

Ashwin Alankar

Ashwin Alankar (pictured), Michael DePalma and Richard Abramson

In a recent blog, Passive Management Does Not Equal Passive Investing, we showed how passively managed portfolios actually create an active investment in which volatility isn’t benign and risk exposures can vary wildly over time. So if we could fix the problem and reduce exposure to spikes in market volatility, would a passive portfolio deliver better result?

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European Equities: In the Market with an Airbag

Michele Patri

Confidence returned to European markets in 2013 after several turbulent years. As the continent continues to resolve its problems, we believe that European stocks offer compelling long-term return potential. But since short-term uncertainties remain, investors should consider balancing a strategic position with tactical short-term defense mechanisms.

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Don’t Forget the Beginning-of-Year Gifting Season

Tara Thompson Popernik

Tara Thompson Popernik (pictured) and Brian Wodar

Many people see December 31 as the deadline for tax-advantaged giving each year. While that’s generally true for charitable donations, it may make sense to give one type of gift as early in the year as possible—the annual exclusion gift.

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Seven Lessons Every Fixed-Income Investor Should Learn from 2013

Douglas J. Peebles

After more than two decades of a fixed-income bull market, 2013 was not a great year for the bond market. Rates bottomed out, many mutual funds had negative returns and bond mutual funds experienced a record $80 billion in redemptions as investors hit the panic button. But it would be foolhardy to assume that 2014 will be a repeat year for fixed income. Rather, the bond market has become more complex and will likely reward those who closely study what worked, what did not and why.

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EM Sovereign Debt 2014: Neither Phoenix nor Failure

Paul DeNoon

Emerging-market (EM) sovereign bonds were burned badly in 2013. Will they rise from the ashes in 2014? We believe some will and some won’t. The watchword for 2014 will be selectivity.

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EM Debt Risk: The Devil Is in the Detail

Shamaila Khan

Investors in US dollar-denominated bonds issued by emerging-market (EM) corporates are worried that the greenback’s rise, together with a broad decline in EM currencies, could increase the risk of defaults on their holdings. How worried should they be?

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Yellen’s Inheritance: Monetary Policy in Flux

Joseph G. Carson

Joseph G. Carson (pictured) and Darren Williams

Evolving economic challenges are transforming central banking around the world. The new monetary-policy doctrine is likely to put greater emphasis on asset-price developments. But, without a true monetary anchor, central banks could still risk a repeat of the recent boom/bust cycle.

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Value Stocks Beckon in Emerging Markets

Henry S. D'Auria

Henry D’Auria (pictured) and Morgan Harting

Years of playing defense have left many emerging-market (EM) equity portfolios laden with pricey safe-haven stocks. We think they risk missing the big opportunity that’s brewing in value stocks, especially as EM economies begin to stabilize.   

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Welcome, Taper

Dianne Lob

The Federal Open Market Committee’s statement that it will begin to taper its bond purchases in January is a good sign that the US economy continues to heal, in our view.

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