Feared Copper “Flood” More Likely a Trickle
Investors have turned bearish on commodities, particularly in the case of copper, where recent talk of a looming surge in new supply has sparked fears of a price rout. We’re skeptical about the copper supply-glut story and don’t think what’s happening in copper is a “canary in the coal mine” for the rest of the metals markets.
Read MoreShadow Banking Darkens China Policy Outlook
Chinese government measures to cool the property market last week could be the start of a broader tightening campaign. The “shadow banking” industry might be next in line for action.
Read MoreEmerging-Market Debt: Pure High-Grade Strategies Gain Popularity
Investors in hard-currency emerging-market (EM) bonds are starting to change the way they think about the opportunity. For some, this means moving to investment-grade-only strategies.
Read MoreTips for Kicking the Tires on Target-Date Funds
The US Department of Labor (DOL) recently issued some tips to guide defined contribution (DC) plan sponsors when selecting a target-date fund as an investment option in their plan. The tips are sensible—one may be even a bit surprising. And they should probably be taken quite seriously, considering the source.
Read MoreHow Much Risk Does Adding Stocks Pose?
Investors have good reasons for their recent net increase in stock fund purchases—and good reasons to remain anxious, in our view. While market volatility has returned to normal, memories of the wild market swings of the past five years loom large. Here’s what we think about the risk of increasing stock exposure now.
Read MoreUS Manufacturing Restores Competitive Vigor
The US manufacturing sector has repeatedly figured out how to reinvent itself when faced with competitive threats. In recent years, American companies have become much leaner, regaining an edge in global markets that should lead to a bigger role in economic growth.
Read MoreNo Need to Fear China’s Housing Crackdown
Stuart Rae and John Lin
New measures to cool China’s housing market have triggered fresh volatility and stock declines across Asia. But we think the latest government moves won’t derail the long-term drivers of Chinese real estate growth.
Read MoreA Spectrum of Possibilities: The Emerging-Market Debt Tool Kit
Emerging-market debt (EMD) can be a valuable addition to a portfolio. The key is to recognize that EMD is not one homogeneous sector: it spans several sectors, each with its own set of risks and return opportunities. To select the best strategy to fit their objectives, investors need to ask a series of questions.
Read MoreEquity Markets Still Have a Lot Left in the Tank
Upbeat headlines alone don’t make the case that US equity markets will continue plowing ahead. But we think there’s plenty of evidence that 2013 could be the fifth consecutive year that equity investors climb the “wall of worry.”
Read MoreIs It Time to Get Back into Stocks—or Too Late?
After five years of fleeing stocks for the perceived safety of bonds, US mutual fund investors became net buyers of stock funds in January. While some see the return of the retail investor as a negative indicator for stocks, we say, “Better late than never.”
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