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As the global economic recovery begins to take hold, interest rates start to rise and the era of quantitative easing nears its end, investors are growing more concerned about inflation's potential comeback. In this paper, George C. Saffaye, Senior Portfolio Strategist, argues that inflation will likely remain subdued, providing several benefits to both the U.S. economy and the U.S. equity market.
Many investors have begun searching for alpha beyond developed and emerging markets, where growth has slowed to a more tempered pace. This has led some to explore the frontier markets, which offer their own set of opportunities and risks. In this paper, Derek Thieme, Senior Research Analyst, and John D. Connolly, Writer, provide an overview of both the prospects and the pitfalls in this unique asset class.
In an increasingly connected world, smartphones, tablets, cloud computing and other recent technological innovations have empowered consumers and businesses, while also providing greater vulnerability to cyberthreats. As these threats proliferate, becoming more dangerous and harder to detect, companies need to boost their defenses or risk significant losses of data and intellectual property. In this paper, Robert C. Zeuthen, CFA, discusses the evolution of cybersecurity and the significant investment opportunities in the security software space.
Experts across The Boston Company weigh in with their views on the U.S. Federal Reserve’s recent decision to delay tapering its quantitative-easing program.
In this video, Chuck Cook, Portfolio Strategist and 21-year veteran of the bond market, talks about the recent dramatic selloff in the U.S. bond market, as the Great Rotation from fixed income to equities begins to play out. In the second installment of his video series, Chuck examines the current valuation of equities relative to bonds, showing that stocks are still quite attractive relative to fixed income. (5:24)
Home to the world's second-largest population, India is a complicated market. Its tremendous need for infrastructure and its rising disposable income – particularly in rural areas – should drive substantial economic expansion. Yet, India has a history of falling short of its seemingly obvious potential. In this paper, Andrea M. Clark, CFA, and Dheeraj Wadhwani explore some of the challenges facing this country and the ways in which they could be surmounted. They explain why investors should consider taking a closer look at the long-term investment opportunity in this emerging market.
Even though the Information Technology sector has been a challenging space for many investors over the past three years, compelling opportunities exist in several key segments. One of the most interesting is the software security market, as businesses and consumers alike respond to a growing wave of cybercrime. In this video, Robert C. Zeuthen, CFA, Senior Portfolio Manager, outlines the vast range of cybercrime threats and pinpoints new sources of risk. He also discusses the subsequent investment opportunities arising from these issues. Watch this video to learn more. (7:04)
As bonds' popularity begins to wane, more funds could find their way into equity alternatives, which can provide attractive risk-adjusted returns and inflation protection as well as transparency and liquidity. Associate Product Development Manager David Selbovitz, along with Director of Alternatives Adam Joffe, CFA, explores the current investing backdrop and details some key advantages offered by equity alternatives.
Despite India's prominence among emerging markets, it has not always lived up to investor expectations. In this video, Andrea Clark, CFA, Portfolio Strategist, discusses some of the country's challenges and explains why she sees long-term opportunity in Indian equities. Although the country is facing some near-term economic headwinds, it is poised for possible ongoing expansion, supported by rising disposable income, falling commodity prices, and more efficient government-spending programs. Watch this video to learn more. (3:27)
Amid evolutionary changes in economics, leadership and policy, Mexico has emerged as an appealing alternative to China for U.S. companies looking to expand or relocate their manufacturing facilities. The erosion of China's comparative advantage over Mexico has resulted in global investment implications, with multiple industries affected by the shift. In this paper, Mark A. Bogar, CFA, and Michelle Donley Holmes outline the economic and political climate in both countries, address relevant energy-supply and safety concerns, and identify emerging winners and losers in the investment landscape.
For one of the few times in history, investors are able to generate more yield from the S&P 500 Index than the 10-year Treasury. In this video, Joel Mittelman, Portfolio Strategist, explains why The Boston Company's Large Cap Value team believes the improving economic conditions will continue to support this trend and identifies the traits that they believe will help distinguish top opportunities. Watch this video to learn more.
Through successive rounds of quantitative easing, the Federal Reserve has engineered a bond-market rally that has reduced the yields of U.S. Treasuries and other fixed-income securities to unsustainably low levels. In recent years, risk-averse investors have been buying massive amounts of fixed-income securities, while the risk of loss from these securities has risen. Right now, the fixed-income market offers very little potential reward — and significant downside risk. The Boston Company's Charles Cook, CFA, Portfolio Strategist, and Brian Blongastainer, CFA, Senior Associate, explain why investors should anticipate the end of the 30-year bull market in bonds and where to look for better returns.
With the market near all-time highs, investors are concerned about a significant decline in U.S. equities. In this video, Michael Arends, Portfolio Strategist, explains why The Boston Company's US Opportunistic Value team believes additional equity appreciation lies ahead, citing Corporate America's ability to deliver future profit growth, the U.S. economy's broadening recovery and a historical precedent for the market's continued rise.
Across a wide swath of emerging markets, the rising wealth of the growing middle class is presenting some compelling investment opportunities. One notable beneficiary is the automotive industry, in which China has become a dominant force. In light of this theme, Senior Research Analyst Frank J. Goguen, CFA, and Writer John D. Connolly analyze several key industry segments and identify some of the best-positioned potential opportunities.
Chuck Cook, Portfolio Strategist and 21-year veteran of the bond market, discusses the possibility for investors to reallocate from fixed income to equities, spurring what some are calling the Great Rotation. In the first installment of this series, Chuck examines the current valuation of the bond market, showing how yields - and attractive fixed-income opportunities - are getting much harder to come by.
As the yen drops and equities rise, investors are questioning whether Japan's new leadership under Prime Minister Shinzo Abe is engaging in competitive devaluation or sparking the dawn of real structural reform. William J. Adams, Portfolio Strategist at The Boston Company, identifies some signposts to help determine whether these measures - often referred to as "Abenomics" - can translate into meaningful reform and lead to a broad-based economic recovery.
In a paper prepared in conjunction with Dreyfus, The Boston Company's Michael K. Arends, CFA, CPA, Thomas J. Rajotte, CFA, and David J. Selbovitz update their thesis on why this might be a good time for investors to rethink the role of mid cap stocks in well-diversified portfolios.
For decades, pundits have been trying to predict a tipping point for Peak Oil - when a sustained and unabated climb in oil prices sparks a near-collapse of the global economy. However, an array of structural shifts in the Energy industry is conspiring to insulate the global economy from any such dramatic increase in the price of oil. In this paper, The Boston Company's Global Natural Resources Team examines some of the popular, and more subtle, dynamics affecting the fragile balance of supply and demand for global oil markets and explores some of the resulting investment opportunities.
A new wave of innovation appears to be emerging in the Health Care industry, sparked by the development of exciting new products that could help address significant unmet medical needs. Daphne Karydas and Charles Silberstein, M.D., CFA, portfolio managers and research analysts at The Boston Company, explore the dynamic environment of this sector and some compelling areas of investment opportunity.
The Boston Company Asset Management's US Small Cap Growth Team, led by B. Randall Watts, Jr., CFA, outlines seven distinct investment themes for the year ahead - concepts that they believe will influence the investing climate over the next several years and enhance the potential for long-term alpha generation in the equity markets.
Given the deluge of headlines about U.S. dividend tax rates, there is widespread concern about the future performance of dividend-yielding stocks. Members of The Boston Company Asset Management's Large Cap Value Team summarize the key near-term potential dividend-tax changes and provide their opinion about related investment implications.
Although the markets have regained their health in the wake of the 2008 credit crisis, they still face challenges. The biggest stress in the system right now is less reliable liquidity, as high-frequency traders dominate the stock market's trading volume. This could result in higher volatility, changes to rebalancing strategies and transitory opportunities for nimble managers. David Brooks, Managing Director of Global Equity Trading at The Boston Company, and his counterparts at Mellon Capital Management and Standish Mellon Asset Management explore the structural changes to market liquidity and what they mean for long-term institutional investors.
As Washington grapples with the looming U.S. fiscal cliff, many investors are growing increasingly concerned about its potential impact on their portfolios. TBCAM's Brian Ferguson, Senior Portfolio Manager of the Dynamic Large Cap Value strategy, and David Daglio, Lead Portfolio Manager of the US Long/Short Opportunistic Equity Fund and the US Opportunistic Value strategies, share their expert insights and explain how they see the issue playing out.
Right now, the Technology sector's focus is shifting away from desktops and servers toward mobility and cloud computing, creating both winners and losers in the marketplace. As The Boston Company's Core Research Technology Team explains, innovation will be rewarded, complacency will be challenged, and computing will never be the same.
With the 2012 presidential campaign in full swing, Senior Research Analyst Michael W. Holton dissects the implications of the coming elections and analyzes how the potential outcomes could affect U.S. equity markets as well as several key industry sectors.
At the intersection of two key investment themes - health care and emerging markets - Senior Research Analyst Frank J. Goguen, CFA, and Writer John Connolly explore the current state of health care across the emerging-market landscape and identify the related areas that are positioned to benefit most from the rising wealth of the middle class.
The Boston Company's Michael Arends, CFA, CPA, and Joseph Duffy outline why non-U.S. investors should look beyond large-cap stocks and consider the potential offered by small-, small/mid- and midcap stocks in a long-term investment portfolio.
Senior Research Analyst Shirley E. Mills, CFA, examines the burgeoning revival of the American manufacturing segment, highlighting the relevant changes in the economic environment, identifying the investment implications and pinpointing possible winners and losers within this emerging trend.