Insights / Blogs

Insights / Blogs

March 27, 2015

A Tale of Two Investment Signals

by R. Dino Davis, CFA, Institutional Portfolio Manager

Investors today are as concerned about protecting capital in market downturns as they are with earning returns in up markets. The numerous financial crises in the past 15 years have demonstrated just how damaging volatility can be to investment performance over time.

Week in Review: Mideast Unrest, Weak Data Trouble Markets

For the week ended 27 March 2015

  • US Q4 growth unrevised at 2.2%
  • US economic data mixed
  • China's manufacturing activity contracts
  • Eurozone output rebounds, led by Germany
  • Berkshire Hathaway underwrites Heinz-Kraft merger

Global stocks sold off this week on weak Chinese economic data, mixed US reports and rising Middle East violence. The yield on the 10-year US Treasury note climbed briefly above 2.0% before retreating.

March 12, 2015

Active View of the Fed:
It's a Marathon, not a Sprint

by Bill Adams, MFS Chief Investment Officer, Global Fixed Income
As most marathon runners would tell you, how they pace themselves through the entire race rather than when and how they start has a much bigger impact on how well they do in the end. Fixed-income managers and investors might do well to take the same approach. Rather than base investment decisions on how soon the US Federal Reserve will begin hiking interest rates, make those calls with the entire interest rate cycle in mind.

February 19, 2015

Act. Don't react.

by Kevin Beatty, MFS Chief Investment Officer, Global Equity
When markets become more volatile and a downturn looks possible, it is better to act than react. Trading on short-term swings – whether driven by price moves, earnings revisions or momentum – is reactive and rarely produces sustainable performance. A skilled, active approach with a focus on quality companies and long-term value, however, is more intentional and more capable of withstanding difficult markets. In fact, active management may offer some of its greatest advantages when markets head southward.

February 13, 2015

Global Growth? A Little Music But No Harmony.

Fixed Income CIO Bill Adams discusses market forces and prospects for growth
During a recent road show, Bill Adams shared his views on central bank actions, employment growth and the health of the consumer economy. While US growth has raised its volume, growth around the rest of the world has yet to get in tune.