Investing in Volatility: Is Asian Volatility Poised to Rise?

Investing in Volatility: Is Asian Volatility Poised to Rise?

Volatility is cheap these days. That may sound strange at first. But, the Invesco Multi Asset team views volatility as an investable asset type that can be included in our investment strategy. Why might this make sense? We believe volatility can provide additional diversification and return benefits when combined with our portfolio’s other asset exposures. For example, when volatility is low, markets may benefit. But when it rises, markets can come under pressure.

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Neutralize the Effects of Rising Interest Rates with a Market Neutral Strategy

Neutralize the Effects of Rising Interest Rates with a Market Neutral Strategy

The end of the US Federal Reserve’s bond-buying program, called quantitative easing or QE, is raising concern among investors about what could happen to the value of their bond investments if interest rates were to begin climbing in 2015 and years thereafter.

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Four Reasons to Like Internet Stocks

Four Reasons to Like Internet Stocks

Investors looking to increase the risk-return potential in their portfolio may want to talk to their advisors about the Internet sector, which has four merits worth considering:

1)    Price trends that appear favorable
2)    Active merger and acquisition activity
3)    Strong revenue and cash flow growth relative to the broad market
4)    A positive correlation to interest rates

Let’s explore these factors in more detail:

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Climbing the Acropolis of Worry

Climbing the Acropolis of Worry

When markets are said to be “climbing a wall of worry” it means they’re rising despite mounting negative sentiment. I suspect the renewed concerns about Greece’s debt crisis may be such a situation. As I wrote in my February commentary “Bull’s Buck Is Not a Bust,” I believe Greece may ultimately prove a distraction, which hasn’t altered my view that European equities still have upside potential this year.

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Exploring for High Yield Energy Opportunities Amid Ailing Oil Prices

Exploring for High Yield Energy Opportunities Amid Ailing Oil Prices

Energy is a popular topic of conversation in the high yield bond space, with many observers warning of a wave of defaults to come due to the plunge in oil prices.  While there will likely be some defaults in the sector, we believe that the market’s pessimism has been overly broad, and we view energy as a potential source of opportunity in 2015. Having a clear understanding of macro drivers in energy, paired with careful security selection, will be key to successfully navigating this volatile space, in our view.

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Exploring the Quality Factor

Exploring the Quality Factor

The exact definition of the quality factor is debatable, as many investors measure quality in different ways. However, in constructing its S&P 500 High Quality Rankings Index, financial research company Standard and Poor’s (S&P) defines a quality company as one with a high level of stability and growth in earnings and dividends over a 10-year period. S&P’s quality ranking methodology, used since 1956, provides a strong basis for examining the quality factor.1

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