Search Results
Results 51–100
of 143 found.
Finding Large Opportunities in Small-Cap Stocks
by Jason Holzer of Invesco Blog,
While the world’s expectations for US earnings growth have weakened into nearly single digits, Europe is finally seeing some positive developments after years of headwinds. At the same time, European valuations are about 40% cheaper than those in the US on the basis of the Schiller price-to-earnings ratio.1 As we survey the brightening landscape in Europe, looking for companies that meet our criteria for earnings, quality and valuations (EQV), an especially interesting area for us is in the small-cap market.
Combining Active and Passive: Three Issues to Consider for Risk-Averse Investors
by Clint Harris of Invesco Blog,
I was having a lively due diligence meeting with a retirement consultant the other day, discussing how our team manages Invesco Diversified Dividend Fund, and where we, as a conservative strategy, see opportunities and risks in the market today. Then came a moment of truth. The consultant sat back and said, “I really believe in what you all are doing, but many of my retirement plan committees just want passive index funds to bring down expenses.”
Dividend Value Investing: No Time for Suspension of Disbelief, Part 3
by Meggan Walsh of Invesco Blog,
As previously explained in this series, investors who follow Hollywood’s lead and suspend disbelief may very well overlook the potential downside risk of a profit cycle in its later stages. But to avoid misunderstanding the market, it’s important to balance the concerns I’ve previously addressed in the first two parts of this series with supporting factors for the market.
Dividend Value Investing: No Time for Suspension of Disbelief, Part 2
by Meggan Walsh of Invesco Blog,
While investors may be riveted by Hollywood’s surprise endings and cliffhangers, they generally aren’t fond of unexpected plot twists in the market. So here’s a spoiler alert. The operating results of companies in the current cycle have been quite strong, and many investors expect this to continue. But we’ve seen enough plot twists over time to know this can be a risky assumption.
Dividend Value Investing: No Time for Suspension of Disbelief
by Meggan Walsh of Invesco Blog,
When Hollywood tells a story, the expectation is that viewers are willing to suspend disbelief to fully immerse themselves in the plot. But when the market tells a story, suspending disbelief may result in overly complacent investors who blithely ignore the potential downside risk of a profit cycle in its later stages, which we see today through the lens of our full-cycle perspective.
Brazil: Macro Headwinds Are Strengthening
by Sean Newman of Invesco Blog,
Invesco Fixed Income’s outlook on Brazil as a sovereign credit is deteriorating. Downside risks to growth have increased given the country’s deteriorating fiscal position, rising interest rates, lower commodity prices, global growth headwinds, water and electricity shortages, among other challenges. The key for markets, in our view, will be the administration’s ability to deliver on promised fiscal adjustments.
Taking a Multi-Asset Approach to Inflation
by Duy Nguyen of Invesco Blog,
With more than two decades of stable inflation in the US and forecasts calling for moderate inflation in the short term, many investors have become complacent about the risk of inflation to the real value of their portfolios. But inflation can change unexpectedly, and although we don’t believe that change is necessarily imminent, investors should remain vigilant about addressing this risk.
Investing in Volatility: Is Asian Volatility Poised to Rise?
by David Jubb of Invesco Blog,
Volatility is cheap these days. That may sound strange at first. But, the Invesco Multi Asset team views volatility as an investable asset type that can be included in our investment strategy. Why might this make sense? We believe volatility can provide additional diversification and return benefits when combined with our portfolio’s other asset exposures. For example, when volatility is low, markets may benefit. But when it rises, markets can come under pressure.
Exploring for High Yield Energy Opportunities Amid Ailing Oil Prices
by Scott Roberts of Invesco Blog,
Energy is a popular topic of conversation in the high yield bond space, with many observers warning of a wave of defaults to come due to the plunge in oil prices. While there will likely be some defaults in the sector, we believe that the market’s pessimism has been overly broad, and we view energy as a potential source of opportunity in 2015. Having a clear understanding of macro drivers in energy, paired with careful security selection, will be key to successfully navigating this volatile space, in our view.
Why We’re Cautious on Credit
by Rob Waldner of Invesco Blog,
In the current environment of rising global volatility and potentially weak US corporate earnings growth, Invesco Fixed Income is cautious on US and European credit. While European investment grade credit may be supported by the European Central Bank’s (ECB) program of quantitative easing (QE), we believe US investment grade would likely underperform US Treasuries in the current environment, although we would expect it to perform better than riskier assets.
Leaning in to Headwinds and Headlines
by Matt Dennis of Invesco Blog,
There’s been no shortage of headlines focused on European volatility lately, and the current consensus is that Europe is the last place investors want to put money. The risk for investors in my mind, however, is that they follow the headlines and exit Europe now instead of leaning into the headwinds of consensus and building positions.
Contrarian View: A More Balanced Approach to Rate Risk in 2015
by Scott Eldridge of Invesco Blog,
The threat of higher interest rates is dominating many 2015 outlooks for investors and professional forecasters alike. Consensus expectations call for the Federal Reserve (Fed) to begin tightening in the second half of the year, with market rates to rise in concert and bond prices to fall. But the changing composition of voting members on the Federal Open Market Committee (FOMC) is a looming variable that I believe will likely impact the pace and severity of Fed action.
Rate Cut a Positive Jolt for India?s Growth Dynamics
by Jack Deino of Invesco Blog,
In a surprise move, the Reserve Bank of India (RBI) cut its policy rate for the first time in two years on Jan. 15 by 25 basis points (bps) to 7.75%. Encouraged by multiple anti-inflationary catalysts building up over the past few months - including lower commodity prices, a stable rupee, a favorable winter wheat crop and the government?s commitment to fiscal consolidation - the RBI instituted a rare inter-meeting rate cut.
Swiss Surprise: National Bank Ends Currency Cap
On Jan. 15, the Swiss National Bank (SNB) unexpectedly abandoned its policy to cap the value of the franc at 1.2 euros.1 Over the past few years, the SNB has had to sell billions of francs to buy euros to prevent an excessive appreciation of the domestic currency - a too-strong currency could dent the country?s export business.
Averages Won't Keep You Warm...or Wisely Invested
by Jack Tierney of Invesco Blog,
When investors build their portfolio allocations, they correctly look at long-term average returns for the asset classes they?re considering, such as stocks, bonds, real estate, cash and alternatives. After looking at the returns for asset classes below, though, an investor may be tempted to invest everything in emerging market securities and real estate investment trusts (REITs), as they have the highest average annual returns over the last 10 years.
Completing the Alternative Investments Puzzle: Putting the Pieces Together
by Walter Davis of Invesco Blog,
In my previous blog, I discussed why I believe advisors and investors should approach alternative investments much like a jigsaw puzzle and offered an organizing framework that can help. When putting together a puzzle, the first step is to sort and organize all the pieces. For alternatives, the first step is to organize and align the various alternative strategies with specific investment objectives. This step is critical because it helps investors decide whether alternatives can help them meet their needs, and, therefore, whether they should invest in them.
How to Approach the Alternative Investments Puzzle: Putting the Pieces Together
by Walter Davis of Invesco Blog,
Every summer my family and I go on a vacation to the beach. While there, my wife buys a big jigsaw puzzle for us to work on. Every year, we feel overwhelmed immediately after she dumps out all 1,000 pieces.
Three Reasons Why Municipal Bonds May Offer More Than Just Tax-Exempt Income
Tax-exempt income historically has been the main reason why investors buy municipal bonds. As a result of newer tax laws, including several provisions that expired at the end of 2013, tax bills for high-income earners have increased in recent years.
Worried About Year-End Capital Gains Taxes? ETFs May Help
by John Feyerer of Invesco Blog,
This is the time of year when asset managers announce year-end capital gains distribution estimates for their funds. Capital gains are generated when funds sell their holdings at a profit. Due to the solid performance of the markets this year, some investors may find their tax liabilities have grown along with their portfolio balance even if they havent sold their investments.
Risk Parity: Comparing the Objections With Reality - Part 2
As the use of risk parity has grown, so have criticisms against the approach. In this blog series, I look at objections Ive heard about risk parity, and explain why we believe they do not apply to our risk-parity approach - the Invesco Balanced-Risk Allocation strategy.
Risk Parity: Comparing the Objections With Reality Part 1
Over the last several years, risk parity has gained prominence as a general asset allocation approach as well as a specific strategy. Rising adoption rates of the approach have invited scrutiny from both practitioners and academics. We agree with some of the challenges identified by critics and have addressed them over time through our research agenda. Others, however, either do not apply to our version of risk parity or, at least to our knowledge, the approach in general.
Emerging Markets Trends: Whats Negative for One Market May Boost Another
by Steve Cao of Invesco Blog,
Economic conditions have continued to deteriorate in emerging markets, and corporate earnings forecasts have fallen. Overall, emerging markets were down 4.3% in the third quarter, underperforming the developed world. In the midst of this negative news, however, were seeing a few bright spots start to emerge, and weve been able to add holdings that, in our view, became mispriced during market volatility.
Worried About the Unknown? Focus on the Business Cycle Instead
by John Greenwood of Invesco Blog,
Lately, Ive been fielding questions about the possible unknowns that could bring about the end of the current economic expansion. While I understand investors trepidation about the unknown, I believe this concern is misplaced. Business cycles do not generally end because of unforeseen accidents. They normally end because central banks, in an effort to bring down inflation, raise interest rates, which creates an inverted yield curve and slows money and credit growth. We are clearly a long way from this scenario at present.
The Positive Impact of Falling Oil Prices
by Nick Kalivas of Invesco Blog,
Crude oil prices have dropped sharply over the last few months thanks to abundant global production and signs of slowing global economic growth. Lower oil prices could inject spending power into the economy as consumers eventually pay less for gasoline and open their wallets in other areas. This would provide a positive shock and potentially bolster the performance of consumer discretionary shares.
Japan: Small Change Clouds Big Picture
by Mark Jason of Invesco Blog,
We continue to believe that achieving real economic growth in Japan requires changes that are hard to come by. On a recent trip to Japan, it became clear to me that this next stage of Abenomics shorthand for Prime Minister Shinzo Abes three-arrow economic revitalization program of monetary easing, targeted financial support and structural reforms calls for corporate governance reform to take the spotlight as a core part of the important third arrow, particularly as regulatory reforms have made slow progress thus far.
Assessing the Economic Impact of Hong Kongs Occupy Central Movement
by Paul Chan of Invesco Blog,
The Occupy Central (OC) movement was officially launched on Sept. 28, starting with members from the Occupy Central with Love and Peace (OCLP), the HK Federation of Students and Scholarism groups staging a sit-in in Central and Admiralty that blocked traffic in key commercial and business districts in Hong Kong.
Nontraded REITs’ Dividends Come With Confusion, Controversy
by Walter Stabell III of Invesco Blog,
Interest rates have been low for quite some time, and investors are searching for ways to generate higher yields. An increasing number of them have turned to non-exchange-traded real estate investment trusts (nontraded REITs). However, nontraded REITs offer high levels of confusion and controversy along with their high yields, and regulators are concerned that these products may not be appropriate for many of the people who invest in them.
Global Equities Stay Thirsty for Liquidity
by Rick Golod of Invesco Blog,
Taking a step back from the usual economic and market insights, my September commentary is devoted to a topic that Ive been long overdue in addressing. Financial advisors have frequently asked about my approach to asset allocation, and Ive outlined my strategy for diversifying within the US equity space in my commentary, Harnessing the Markets Natural Rotation: An Asset Allocation Strategy. Here, Id like to provide a summary of my outlook, which remains unchanged from the previous month.
It Will Take More Than ECB Rate Cuts for the Eurozone to Fully Recover
by John Greenwood of Invesco Blog,
The European Central Banks (ECB) surprise rate cuts on Sept. 4 reducing its main lending and deposit rates by 10 basis points show that its policies so far have been inadequate to solve the euro-areas economic malaise. Economic growth has stalled, and deflation remains a threat in the eurozone. The rate cuts may help to weaken the euro further in the currency markets, but nobody should be under any illusion that banks will start lending or expanding their deposits as a result of the rate cuts alone, or that these cuts will trigger a wider economic recovery.
Why Development Trumps Acquisitions in Our Real Estate Portfolios
by Paul Curbo of Invesco Blog,
One of the trends affecting real estate markets this year is the increasing difficulty commercial real estate companies are facing as they seek to complete potential acquisitions. Strengthening commercial real estate fundamentals, coupled with the low cost of financing, have resulted in a large increase in the number of bidders for assets in the past several quarters.
Searching for Value in Global Small-Cap Stocks
by Virginia Au of Invesco Blog,
While many global small-cap companies have gotten their balance sheets in good shape over the last few years, valuations are currently a concern. The MSCI World Index is up 184% since the market low on March 9, 2009, and we believe most equities are at or near full value. This makes it much harder to find high-quality companies at cheap prices. Against this backdrop, the challenge is to find the hidden gems within the vast universe of global small-cap companies.
Correcting a Common Misconception about Alternative Investments
by Walter Davis of Invesco Blog,
A common misconception about alternative investments is that these investments have failed anytime they underperform the stock market. Investors need to know that alternative investments are designed to achieve returns that are more consistent and less volatile than those of the stock market on a long-term basis across multiple market cycles.
Dynamic and Durable Growth Part 4: The Coming Mobile Advertising Boom
by Ido Cohen of Invesco Blog,
This is the fourth in a four-part series examining dynamic and durable growth themes that affect the US economy and present opportunities for investors. The first post examined the biotech revolution, the second explored the enormous implications of shale energy, and the third looked at the impending mobile data tsunami.
Dynamic and Durable Growth Part 3: The Mobile Data Tsunami
by Ido Cohen of Invesco Blog,
This is the third in a four-part series examining dynamic and durable growth themes that affect the US economy and present opportunities for investors. The first post explored the biotech revolution, and the second looked at the enormous implications of shale energy. The final post will examine the coming mobile advertising boom.
Dynamic and Durable Growth Part 2: The Enormous Implications of Shale Energy
by Erik Voss of Invesco Blog,
This is the second in a four-part series examining dynamic and durable growth themes that affect the US economy and may present opportunities for investors. The first post explored the biotech revolution, and the third and fourth posts will discuss the massive changes in mobility.
Dynamic and Durable Growth - Part 1: A Biotech/Pharma Revolution
by Janet Luby of Invesco Blog,
This is the first in a four-part series examining dynamic and durable growth themes that affect the US economy and may present opportunities for investors. The remaining three blog posts will examine the enormous implications of shale energy and the massive changes in mobility.
Mid-Year Review: Interest-Rate Sensitive Stocks May Correct With First Fed Rate Hike
by Rick Golod of Invesco Blog,
With the recent strength in the economy and decline in the unemployment rate, the probability that the Federal Reserve (Fed) increases rates in the first half of 2015 is rising, in my opinion. Given the volume of media noise about this, its understandable that many investors are still worried about the stock markets potential for correction.
Energy: Shale Generates Tectonic Changes
by Stephen Toy of Invesco Blog,
The shale revolution, only seven or eight years old, has been the catalyst for a tectonic change in US energy production and policy. It has also created a new paradigm in US manufacturing, launched a renaissance in the chemical industry, and is driving infrastructure spending. So how do we think about the shale revolution in terms of investing? Its twofold.
India and Indonesia: Change, Challenge and Opportunity
by Jack Deino of Invesco Blog,
In both India and Indonesia, leaders are facing intense pressure from markets and investors to initiate reforms that are real rather than merely cosmetic. Our outlook is somewhat more bullish for India, but we believe change can lead to opportunity in both countries.
How Road Construction Can Help With Portfolio Construction
by R. Scott Dennis of Invesco Blog,
Investors have long looked to real estate to provide income potential, hedge against future inflation and provide diversification to traditional stock and bond portfolios. More recently, an increasing number of investors have been expanding their horizons and including real assets in their portfolio construction as well such as infrastructure and master limited partnerships (MLPs). At Invesco Real Estate, we believe the US and the world is heading for a building boom that would bode well for real assets.
A Contrarians View of Value: Pharmaceuticals
by Kevin Holt of Invesco Blog,
The pharmaceuticals industry is in the midst of a renaissance. Patent expiration concerns, pipeline disappointments and setbacks, and a highly uncertain regulatory backdrop have forced managements to rethink the way they have historically conducted business. In this environment, certain companies stand out to us as deep value opportunities businesses whose stock prices dont reflect our view of their long-term potential.
A Contrarians View of Value: Financials
by Kevin Holt of Invesco Blog,
In the wake of the Great Recession, and significant regulatory changes, investors are concerned that large banks may not be able to generate the type of profits that they have in the past. We dont disagree with that assessment. However, we do disagree with the current equity valuations of the large banks we believe the market has priced in a too-pessimistic view of profitability.
Thai Coup: Business as Usual
On May 22, Thailands military launched its 12th coup after a failed attempt to get the caretaker government and the opposition to resolve a seven-month political stalemate. While the military has seized temporary control, we believe the coup will have limited economic and investment impact.
After Indias Election, Execution takes Center Stage for Debt Markets
by Jack Deino of Invesco Blog,
Financial markets in India have already rallied strongly in anticipation of the overwhelming majority win by incoming Prime Minister Narendra Modi and the Bharatiya Janata Party (BJP). The countrys currency (the Indian rupee) rose 15% from its August peak, while five-year credit default swaps on the State Bank of India (SBI) tightened from a spread of 371 to 207 in the same period.
Three Questions Investors Need to Ask About Alternatives
by Donna Chapman Wilson of Invesco Blog,
The world of alternative investments includes a range of hedge fund-like strategies that typically consist of publicly traded equity and fixed income investments, but are unconventionally managed using a variety of exposures (long, short, market neutral) and financial instruments. These strategies have gained acceptance in recent years, and have become more widely available to individual investors through vehicles such as mutual funds. However, questions still remain about the best ways to incorporate them into an asset allocation strategy.
Energy: An Overlooked Bull Market
by Ron Sloan of Invesco Blog,
Defensive stocks, such as health care and utilities, have led the market for most of 2014. But were starting to see a shift toward cyclical sectors that offer greater exposure to a strengthening economy. In my view, the most overlooked cyclical sector is energy, which has experienced a very strong start this year thats been under the radar of many investors.
Retail, Infrastructure Are Issues to Watch in Colombia and Peru
by Jason Trujillo of Invesco Blog,
The Invesco Emerging Markets team spent a week traveling through Colombia and Peru, meeting with company management teams, consultants and government officials. During our trip, two themes were prevalent that could have broad implications for local companies and global investors: the relative under-penetration of modern-format retailing throughout Colombia and Peru, and the severe need for infrastructure improvement.
Results 51–100
of 143 found.
