Eaton Vance on the Markets

Income Market Insight

Payson F. Swaffield, April 2013

What a difference a quarter makes
In show business, there’s an old expression that it is easier to follow a good act than a bad one. The first quarter of 2013 showed that this saying doesn’t necessarily carry over to the fixed-income markets.

Economic Market Insight

Thomas Luster, April 2013

The U.S. Federal Reserve (the Fed) has a plan to rebuild economic growth. Likewise, Europe had a plan to deal with its debt crisis until a small bank on the tiny island of Cyprus knocked the plan into disarray (or to the policymaking canvas, if you will). What happens if the sluggish U.S. recovery gains momentum and the bond market lands a similar blow to the Fed’s monetary policy game plan?

Equity Market Insight

Duncan W. Richardson, April 2013

The first three months of 2013 highlighted the equity market’s ability to frequently defy investor expectations. In particular, investors who expected the U.S. market to falter early in the year were likely taken aback by the strength of its first-quarter rally. However, by quarter-end, investors who had maintained or perhaps increased their equity exposure in the face of potential headwinds may have been well-rewarded for their fortitude.

Examining the Impact of Sequestration

Thomas Luster, March 2013

• In our view, sequestration will have a temporary, but measurable impact on U.S. economic growth

• We believe markets have largely discounted the effects of sequestration’s spending restraint

• Despite slower spending growth, deficits are projected to expand again after 2017

Hexavest in Focus

Vital Proulx, February 2013

In August 2012, Eaton Vance finalized an exciting new partnership with Canadian money manager Hexavest Inc., acquiring a 49% minority interest in the firm. Learn about Hexavest and the firm’s innovative, established approach to managing portfolios.

It’s Time to Be Opportunistic, Flexible and Focused in the Credit Markets

Kathleen Gaffney, January 2013

It is critically important to understand the risks associated with an allocation to traditional fixed-income strategies in today’s market environment. Investors utilizing core bond solutions may believe they are reducing the risk in their portfolio by moving from equities to traditional fixed-income securities. But due to the possible depreciation in bond prices once rates rise, an allocation to traditional fixed-income strategies may offer high risk with lower or no return.

Portfolio Manager Viewpoints: Same Challenges, Different Year

Payson F. Swaffield, Thomas M. Metzold, Scott H. Page, Eric Stein; December 2012

As 2012 draws to a close, it’s fair to say that much has changed over the past year. With the U.S. elections firmly in the rear view mirror, a major element of uncertainty that has hung over the investment landscape has been resolved. Many global markets are on track to deliver solid returns this year, after a lackluster 2011.

Portfolio Manager Viewpoints: Navigating Fiscal Chaos

Richard Bernstein, Thomas Luster, Thomas Shively, Eric Stein; August 2012

The “fiscal cliff” describes an abrupt slowdown in economic growth that could result from a worrisome combination of substantial increases in tax rates and federally mandated spending reductions aimed at cutting the budget deficit by $1.2 trillion. Against this backdrop, we recently gathered four Eaton Vance investment professionals to share their perspectives on the possible investment implications and to caution investors not to make wholesale changes to their portfolios in the short term.