Insights / Blogs

Insights / Blogs

February 27, 2015

Week in Review: Brighter Data Cheer Markets


For the week ended 27 February 2015

  • US GDP growth revised down to 2.2% for fourth quarter
  • US service sector expands, home prices rise, and confidence falls
  • Greece receives four-month bailout extension
  • Eurozone sentiment rises

Global economic data turned brighter this week, driving stocks higher. Greece and its creditors agreed to a four-month extension on its financial lifeline, settling immediate concerns of a “Grexit” from the eurozone.

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. 

February 02, 2015

The power of active management: Stick to your convictions

by Michael Roberge, MFS Co-CEO, President and Chief Investment Officer

Active managers are paid to have conviction — to step decisively away from their benchmark and pursue returns by distinguishing good investments from bad. For active management to be most powerful, however, those convictions must be solid, and more importantly, they need to last. In fact it's the willingness of an active manager to develop convictions and stick with them — through entire market cycles — that could ultimately create the best opportunity to generate long-term, sustainable outperformance.

January 22, 2015

ECB’S QE — AT LAST

IN BRIEF
  • The ECB has announced its much anticipated plans to pursue a programme of large-scale asset purchases.
  • At the margin, we think the programme can improve the eurozone’s chances of avoiding a deflationary malaise.
  • We see potential problems with dividing the QE purchases among the balance sheets of individual national central banks.
  • On balance, we don’t expect more liquidity in the system to meaningfully boost growth or advance the prospects for structural reform.
On 22 January, the European Central Bank (ECB) took some decisive steps towards tackling anaemic growth rates and disinflationary pressures. The measures announced are for €60 billion purchases per month of euro-denominated investment-grade securities issued by euro area governments and agencies, starting in March 2015 and continuing for 18 months through September 2016 — or until there is a sustained adjustment path in inflation to the target of below but close to 2%, thus effectively leaving the programme open ended.