Americas

Stocks Still Have Some Room to Grow

Stocks have been on a pretty strong run in recent years, and some investors are nervous that the market could run out of steam. We think there’s still more upside potential.

Multi-Asset

Valuing Stocks Requires a Human Touch

by Kevin Simms, Joseph G. Paul

Following pure valuation metrics today could leave equity portfolios with severe imbalances—especially in financials. But by studying patterns of the past, investors can gain insight into investing in underappreciated stocks by applying a human touch.

Equities

Actively Manage Your Activist Credit Risk

by Jeff Skoglund

Bondholders fret about leveraged buyouts (LBOs) late in the credit cycle. But this time around, with new federal lending rules slowing LBO activity, shareholder activism is stealing the spotlight—and the cash flows. The threat to bond portfolios is just as serious.

Fixed Income

China Bonds Still Offer Opportunities

As more corporate bond issuers in China run into financial trouble, investor anxiety about the possibility of a broader market collapse has understandably increased. We don’t think it’s time to man the lifeboats, however; on the contrary, we believe that Chinese bonds still offer good opportunities for research-driven investors.

Emerging Markets, Fixed Income

Is an Index Impassive?

by Dianne Lob

Passive investments continue to gain popularity, generate record flows and grab headlines. We understand the appeal. But investors must also consider some of the risks of tethering their fortunes to a benchmark.

Equities

Active Equities Don’t Have to Be Riskier

by Kent Hargis, Chris Marx

Many investors are throwing in the towel on active equity management in the name of evading risk. But being active doesn’t always mean accepting higher risk. Consider, for instance, the benefits of even-tempered stocks.

Equities

Chicago Faces Critical—but Not Insurmountable—Financial Problems

by Joseph Rosenblum, Neene Jenkins

Chicago’s decades of poor financial decision making will come to a head as Mayor Rahm Emanuel starts his second term today. His battle to enact pension reform and stabilize finances will shape his legacy and Chicago’s future.

Fixed Income

Looking for the Ideal Mix with Emerging-Market Local-Currency Bonds?

by Marco Santamaria

For investors who want an emerging-market (EM) debt allocation that includes EM local-currency government bonds, it may make sense to use developed-market (DM) government bonds to diversify EM currency volatility.

Emerging Markets, Fixed Income

Stocks Look Expensive…and Still Attractive

Developed-market equity valuations seem a bit expensive today—but we still think they’re worth an overweight in multi-asset strategies. A wider view shows that stocks remain attractive globally.

Multi-Asset

In Russia, Caution Still Required

Ordinarily one of Europe’s most vibrant cities, Moscow on a recent visit looked like a town in a defensive crouch. And while Russian economic conditions have stabilized somewhat, we think they will remain difficult for some time.

Emerging Markets, Fixed Income

A Wild Ride for Global Bond Yields

Bond yields in key markets around the world have been on something of a roller-coaster ride, moving up quickly in recent months. Ten-year Treasury rates closed at 2.28% on May 11, up from 1.65% at the end of January.

Multi-Asset

Bubble Trouble in Nasdaq’s Nursery

by Dan Roarty

Are technology stocks in a bubble? Opinions differ. But the sector’s startup baby boom and the rich valuations being showered on so many fledgling firms warrant a more discriminating approach for investing in disruptive innovation.

Equities

Taxable Bonds in a Muni Account?

by Daryl Clements

It sounds unorthodox. But for investors facing taxes, it makes sense to consider opportunities beyond the municipal bond realm. Because it’s all about what you have left after taxes.

Fixed Income