Real estate stocks have now rebounded from the crash during the global financial crisis. But we think valuations are still reasonable, especially as property fundamentals continue to improve in key markets. (more…)
To stay solvent, hospitals run a numbers game, charging high prices to patients with private insurance to offset lower payments from Medicare and Medicaid and the uninsured. Some hospitals make a nice profit; others struggle. Now hospitals face a game changer—the Affordable Care Act, which expands Americans’ access to medical insurance but changes the reimbursement rules. (more…)
We expect little change in UK fiscal policy in Wednesday’s budget. Instead the Chancellor George Osborne may try to nudge the Bank of England towards more aggressive monetary easing, putting further pressure on the pound. (more…)
Adding other sources of diversification could significantly reduce the risk from increasing stock exposure, our research suggests.
Investors have turned bearish on commodities, particularly in the case of copper, where recent talk of a looming surge in new supply has sparked fears of a price rout. We’re skeptical about the copper supply-glut story and don’t think what’s happening in copper is a “canary in the coal mine” for the rest of the metals markets. (more…)
Chinese government measures to cool the property market last week could be the start of a broader tightening campaign. The “shadow banking” industry might be next in line for action. (more…)
Investors in hard-currency emerging-market (EM) bonds are starting to change the way they think about the opportunity. For some, this means moving to investment-grade-only strategies. (more…)
The US Department of Labor (DOL) recently issued some tips to guide defined contribution (DC) plan sponsors when selecting a target-date fund as an investment option in their plan. The tips are sensible—one may be even a bit surprising. And they should probably be taken quite seriously, considering the source. (more…)
Investors have good reasons for their recent net increase in stock fund purchases—and good reasons to remain anxious, in our view. While market volatility has returned to normal, memories of the wild market swings of the past five years loom large. Here’s what we think about the risk of increasing stock exposure now.
The US manufacturing sector has repeatedly figured out how to reinvent itself when faced with competitive threats. In recent years, American companies have become much leaner, regaining an edge in global markets that should lead to a bigger role in economic growth. (more…)