Thomas Luster, October 2013
No clear direction: In the third quarter, we once again saw the U.S. Federal Reserve (the Fed) put itself at center stage in the economy and markets. Since Fed Chairman Ben Bernanke raised the specter of slowing monetary stimulus in the second quarter, we have remained focused on the potential impact the end of quantitative easing (QE) would have on investors and the economy.
Equity Market Insight
Duncan W. Richardson, October 2013
If there’s one thing the stock market doesn’t like, it’s uncertainty. The third quarter of 2013 was a case in point, thanks in part to a lack of clarity regarding the policies, intentions, future leadership and composition of the U.S. Federal Reserve (the Fed).
Are you managing volatility or is it managing you?
Timothy Atwill, Richard Bernstein, Eric Stein, Bradford Godfrey, Chris Sunderland; September 2013
• Market volatility has caused investors to make emotional decisions, resulting in performance that may have hindered their ability to reach investment goals.
• Eaton Vance believes that sound investment strategy should provide investors with tools for managing volatility, so the market’s inevitable fluctuations may work on their behalf.
• We discuss four approaches to managing volatility: reducing, navigating, harnessing and monetizing.
Confronting the tax drag
Tom Metzold, Jim Evans, Lew Piantedosi, Peter Crowley; September 2013
• The impact of the “tax drag” on investor portfolios can be significant over long time frames, potentially consuming a quarter or more of every dollar earned by the average investor.
• As federal tax rates have risen for many investors, so too has the risk of losing a larger portion of one’s returns to taxes—highlighting the need for a tax-aware investment approach.
• Municipal and tax-advantaged bond strategies, tax-efficient equities and solutions for high-networth investors can all help improve investors’ after-tax portfolio performance.
Solving the income puzzle: When traditional sources no longer complete the income picture, where’s an investor to turn?
Christopher Remington, Michael A. Cirami, Kathleen Gaffney, Scott Page; September 2013
• Income needs may be as high as they’ve ever been, while the yield potential from many traditional investment classes has dwindled to generational lows.
• Investors who remain in high-priced, low-yielding core bond strategies could experience loss of principal (and mounting retirement shortfalls) if interest rates revert toward their mean.
• We advocate creating an integrated, multi-pronged income plan that may offer yield potential that meets investor needs, while managing key risks found in the typical core fixed-income allocation.
The unloved bull market: Richard Bernstein on the U.S. equity rally
Richard Bernstein, June 2013
The U.S. equity market has seen quite a rally in 2013. Both the Dow Jones Industrial Average and the S&P 500 Index eclipsed their 2007 record closing highs in the first quarter and are up 17.4% and 16.7%, respectively, year-to-date as of May 15, 2013. Additionally, the S&P 500 has risen more than 140% from its bear market low on March 9, 2009, having done so against a slowgrowth economic backdrop.1
1 Source: Factset. The Dow Jones Industrial Average is a price-weighted average of 30 U.S. blue-chip stocks traded on the New York Stock Exchange and the NASDAQ. The S&P 500 Index is an unmanaged index of large-cap stocks commonly used as a measure of U.S. stock market performance. Index performance is historical and not indicative of future results. It is not possible to invest directly in an index.
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.