Emerging-market (EM) corporate debt returned big numbers for investors in recent years, as the sector rode a general wave of optimism about the future. But those days are gone. In 2013, successful investors have had to take a more painstaking path. (more…)
Dianne F. Lob (pictured) and Ding Liu
With the US stock market repeatedly reaching all-time highs in recent weeks, many investors are becoming leery of investing in stocks. Focusing on the market’s level is a mistake, in our view. It’s market valuation, not level, that matters.
The failure of emerging economies to piggyback on the rich-world recovery this year is giving investors pause, despite enticing emerging-market (EM) valuations. But investors shouldn’t underestimate the power of this normally symbiotic relationship—or the upside potential in EM stocks next year on even a modest pickup in EM economic activity. (more…)
Ashish Shah (pictured) and Ivan Rudolph-Shabinsky
Investors who chose high-yield bank loans over high-yield bonds earlier this year, expecting to be insulated against rising rates, might be surprised to find that bonds might have worked out better. (more…)
Tara Thompson Popernik (pictured) and Paul Robertson
Charitable giving remains one of the few ways that US taxpayers can avoid taxes outright. If you’re philanthropically inclined, giving can be a win-win that benefits you and society at the same time.
Michael DePalma (pictured) and Guoan Du
Passive investments are often misunderstood. Instead of providing static positioning as implied by the label, they can be very capricious because of market and sector turbulence. To tame a passive asset, we think investors need to exert more active control over the dynamics of volatility. (more…)
The wealthy will likely see higher 2013 income taxes. One of the newest additions to the tax bill is the 3.8% Medicare surtax. By planning ahead, you may be able to reduce the tax bite—or possibly avoid being bitten altogether. (more…)
Expectations are high that President Xi Jinping and Premier Li Keqiang, nearly one year into their likely 10-year reign, will unveil reform policies that will define China’s social and economic development over the next decade and beyond. After the proposals are made public, the new leaders must prove that they can implement substantial change without derailing the growth of the world’s second-largest economy. (more…)
Many US investors may be disappointed when they open their account statements. Despite the widespread news that the Dow Jones Industrial Average gained 21% in the first 10 months of 2013, most US investors’ taxable portfolio returns were far lower—typically somewhere between 5% and16% range.
You’ve just settled into your seat in a jetliner when the pilot announces a mechanical delay. Unfortunately, this is not an uncommon experience. But it could become a rarity before long, as jet engines and other moving parts are increasingly wired with technology that can diagnose problems before they occur. (more…)