What Works in Tough Equity Markets?
During the market crisis of 2008–2011, traditional equity style strategies such as value and growth underperformed the markets, often by wide margins. But our research shows that there was a way to diminish the negative impact of market turmoil on portfolio returns.
read moreGlobal Bonds: Protection in Down Markets
As US Treasury yields continue to plumb record lows, some have quipped that government bonds have gone from offering risk-free returns to “return-free risk.” Indeed, when interest rates inevitably rise from their current levels, bondholders face the prospect of poor or even negative returns.
read moreIs Your Global Bond Fund Riskier than You Thought?
Global bond funds continue to attract strong inflows as near-zero interest rates lead many investors to look abroad for assets with attractive yields. As we’ve argued before, global bonds provide many important benefits, but it’s crucial that investors select the right type of fund.
read moreLDI: More on Going Global in Bonds
For liability-driven investors, exposure to global bonds offers important benefits: a strong correlation to domestic debt, with greatly reduced volatility. However, these are not the only positives. Today, we’ll look at some other important benefits—such as greatly expanding the investable universe and offering a natural hedge against the tail risk of a domestic credit crisis—and [...]
read moreDefining a New Framework for Equity Investing
Equity investing is facing a crisis of confidence. After several years of high volatility, disappointing returns and the failure of conventional diversification, the fear of equities is pervasive. After all, how can anyone rely on equities to meet future targets when extreme market turmoil can destroy years of careful planning in a heartbeat?
read moreA Survival Guide for Today’s Market
Risk is unusually high these days. Investors can either be paralyzed by uncertainty…or seize the long-term opportunities that volatility creates. We believe the key to choosing the latter path is updating five long-standing investing precepts for today’s tough times.
read moreDon’t Be Caught Long: Strategies to Curb Interest-Rate Risk in the Municipal Market
A municipal portfolio full of bonds with maturities in the 20- to 30-year range is exposed today to the high risk of rising interest rates. As my colleague Wayne Godlin explains, now may be the right time to shorten your duration and lower your credit quality.
read moreMeeting Your Fixed-Income Goals
The most common goals for fixed-income investors are stability, generating income and diversifying their equity exposures. Our research suggests that they can achieve all three goals more efficiently if they don’t remain wedded to their traditional approaches and benchmarks.
read moreA New Paradigm for Balancing Risk and Return
One of the greatest challenges facing money managers in the aftermath of 2008 has been how to balance the fear of loss against the need to take risk in order to generate positive real returns. Striking the right balance between them will, I believe, be the key to investment success in 2012.
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