europe

How the Populist Wave Could Reshape Policy

by Darren Williams, Guy Bruten, Fernando J. Losada

Populism is here—and it isn’t going away. The ideology can come from either side of the political spectrum, and it can have a big impact on policy, the macroeconomic landscape and—ultimately—how we invest today.

Economics

Why Bond Investors Should Mix Rates and Credit

Fixed-income assets come in two varieties: risk-reducing and return-seeking. Most of the time, they add value at different times and in different market environments. By pairing them in a single portfolio, an investor can minimize drawdowns and procure a relatively high level of income.

Fixed Income

Europe’s Bond Benchmarks Exposed

Like other traditional bond benchmarks, key European investment grade bond indexes have changed dramatically over the last five years.

Fixed Income

Beware Europe’s Bond Bandwagon

by John Taylor

As European markets face fresh volatility and a looming bond drought, think twice before following the crowd. Instead, focus on securities whose yields can provide a buffer when turbulence strikes.

Fixed Income

Looking for Income in All the Right Places

by Morgan Harting, Martin Atkin

Investors and advisors know they can’t depend solely on the old standbys—bonds, high-dividend stocks and cash—to produce income today, and they’re ready to try a new approach. But which one?

Alternatives, Multi-Asset

Greek Moves Test ECB Resolve on Europe

by Darren Williams

Greece’s five-year debt crisis is escalating fast. A default on the IMF now looks almost certain and the country is taking a big step toward a possible exit from the euro area. What really matters now, though, is the impact on other countries—and how the ECB will respond.

Economics

The Perils of Low Liquidity and High Leverage

Diversify. It’s a cardinal rule of sound investing. But what are investors to do when a well-diversified portfolio won’t protect them? It’s time to start thinking about an answer.

Alternatives, Fixed Income

Getting More from Low Market Volatility

by Alex Barenboym

Stocks still seem attractive, but it’s important to guard against a potential spike in market volatility. Today’s low-volatility environment happens to be a good time to shop for downside protection.

Multi-Asset

It Pays to Be Choosy in Emerging Markets

by Morgan Harting

Emerging equities remain rich in return opportunity, in our view. But as their recent whiplash behavior illustrates, capitalizing on this potential will require far greater selectivity than it did in the past.

Emerging Markets, Equities

China Reforms Create a New Muni Market

Are you an optimist or a pessimist? These days, news about China seems to be mainly good or mainly bad. The market and media response to China’s local-government debt swap programme shows why maintaining a balanced view is essential.

Emerging Markets, Fixed Income

Emerging-Market Stocks for Flywheel Fashionistas

by Sammy Suzuki

The passion for gym-to-street fashion has gone global, and shows no sign of losing vitality. It’s also keeping business humming for a network of yarn spinners, fabric mills and sneaker makers across emerging Asia.

Emerging Markets, Equities

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