Even when U.S. stocks appear overpriced based on fundamental valuation
metrics, we still see attractively priced stocks available. One of the
places where we are finding long-term opportunities is among companies
that are significantly increasing their dividend payments, or “dividend
The escalating dispute over Ukraine’s sovereign borders is generating
global headlines and worrisome what-ifs, but so far the economic
ramifications have been largely local. The broader story for emerging
markets investors in 2014 is the same as it’s always been: China.
After last year’s 30% and higher gains for U.S. stocks, there’s a
lingering question of how much farther they can climb. This question is
coming from those who already have stocks and want to know if now is the
time to bail, and by those who are showing up late to the big party and
wonder how much longer the band will keep playing. It’s easy to
understand why the question is being asked, though it’s harder to arrive
at a definitive answer.
Stock and bond markets are approaching an inflection point. The Federal
Reserve’s bond-buying program known as quantitative easing is being
steadily wound down, and the Fed is preparing for short-term interest
rates to start going up.