Pay Attention to Pricing Power in 2013
Revisions to earnings forecasts started to improve in late 2012 as analysts’ worst macroeconomic fears eased. But this year, global companies may find it tougher to boost profits while their pricing power remains weak.
read moreWill Emerging Market Earnings Rebound in 2013?
For two years, emerging markets companies have delivered inferior earnings growth and investment returns compared to peers in sluggish developed market economies. Now, the consensus is that earnings growth will catapult from near-zero in 2012 to 13 per cent in 2013. Hopes were high at the end of 2010 and 2011, too, yet analysts were then [...]
read moreHow Much Hedge Fund Exposure Makes Sense?
Our research suggests that a well-diversified allocation to hedge funds might improve portfolio returns, but their greatest benefit is the risk reduction that comes from their low correlation to stocks. Here’s why.
read moreTAG Could Be Tagged in Fiscal-Cliff Negotiations
Doug Peebles, Jon Denfeld and Ed Dombrowski Caught up in the wrangling over the US fiscal cliff is a little-publicized program that could have big implications for short-term investors and bond yields if the program expires on December 31. If the Transaction Account Guarantee (TAG) program ends, huge sums of money may start looking for a new [...]
read moreBuy and Hold Is Dead…Long Live Buy and Hold
It seems that rumors of the death of long-term equity investing have been greatly exaggerated.
read moreWho’s Afraid of the Fiscal Cliff?
Warnings about the fiscal cliff have saturated the US public debate. But consumers are still spending, even though they face huge potential tax hikes, while companies are being very cautious—even though they have relatively little to lose.
read moreDon’t Get Trapped by a Crowd in Stocks
Nobody likes to be stuck for too long on a crowded bus or train—especially when it’s time to get off. But when it comes to stocks, we often overlook the risks of getting trapped with too many people in an untenable position.
read moreActive Management: Don’t Drop the Pilot
For years, we’ve advised clients to hold diversified portfolios with balanced allocations to stocks, bonds and other assets. Lately, it’s been a hard sell, especially after years of underperformance by active equity managers. But the tide may be turning.
read moreAvoid a Passive Pickle in Less Volatile Stocks
By Chris Marx and Kent Hargis Less volatile, defensive stocks have been so popular lately that many investors are now asking whether the low-volatility opportunity has come and gone. The question highlights why we think a multifaceted, actively managed approach is the way to go when investing in this space. These strategies have more levers [...]
read moreHow Can Balanced Investors Mitigate Their Equity Risk?
Over the past three decades, bonds have provided balanced investors with the best of both worlds. As 10-year Treasury yields fell from a high of 13.7% in 1980 to less than 2% today, bonds provided both strong returns and a great cushion in times when equities were weak. Bonds are still important, but investors shouldn’t [...]
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