Insights / Blogs

Insights / Blogs

April 24, 2015

This Week in Review: Markets Tread Water on Soft Data, Earnings

For the week ended 24 April 2015
  • China's central bank cuts reserve requirement
  • Eurozone manufacturing slows
  • US durable goods data disappoint
  • Teva bids $40 billion for rival Mylan
  • Deutsche Bank fined $2.5 billion

China's central bank cut bank reserves again in an effort to stimulate lending and growth during a week of soft global data. Uncertainty over Greece's negotiations with creditors cast a shadow over markets. US economic reports were weak overall, with manufacturing growth slowing and durable goods orders falling.

April 06, 2015

In Search of Solutions

by David W. Connelly, Director, Global Product

Investors are always interested in maximizing the returns on their invested capital. The question is this: How much risk is it prudent to take in the pursuit of returns? And, also, what additional constraints are considerations in deciding on a particular investment strategy or approach?

Investment constraints can take myriad forms, including, for instance, the requirement for a certain degree of liquidity or the desire to screen out certain types of securities for environmental, social or governance reasons (so-called ESG investing). The interplay between risk tolerance and these kinds of investment constraints largely determines the course an investor chooses to chart for a portfolio.

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.

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.