Eric Schoenstein, co-manager of the Jensen Quality Growth Fund, likes investing in high-quality companies that don’t need to borrow money to grow. Problem is, with interest rates virtually nil and even the junkiest of companies able to load up on cheap debt, the ability to self-finance growth doesn't count for as much as it used to. That’s one reason Schoenstein’s fund has lagged peers and the S&P 500 in the last three years.
Pacific Investment Management Co. is becoming less dependent on Bill Gross, preparing for an eventual future without the world’s best-known bond investor and adding pressure on its rising stars to live up to his legacy.
Rob Arnott, chairman of Research Affiliates LLC, favors emerging-market stocks. The price of options to protect against emerging market equity losses has climbed to its highest since 2009 relative to U.S. contracts. Bloomberg Radio's Catherine Cowdery reports on Exchange Traded Funds.
How's this for an investment opportunity: a guaranteed yield of 3.27 percent, with an enormous potential downside. As risky as that sounds, millions of investors are moving money into Treasury bonds as a "safe haven." In early September, the yield on the 30-year Treasury bond sank to a new low of 3.27 percent, while the 10-year note fell to 1.9 percent. If the inflation rate stays anywhere close to its current modest 3.6 percent pace, long-term investors will be guaranteed to lose money after factoring in inflation's toll.
Pfizer Inc.’s Wyeth unit and Teva Pharmaceuticals USA Inc. were accused by a group of prescription drug retailers of illegally keeping a generic version of the Effexor XR antidepressant off the market.
Stocks in developed nations took 17 months longer than emerging markets to erase losses spurred by Lehman Brothers Holdings Inc.’s 2008 bankruptcy, recovering after the Federal Reserve took steps to stimulate growth.
Stocks and Treasuries are moving in tandem twice as often as they normally do, a sign investors are growing convinced the U.S. will lose its AAA credit rating and that an impasse among lawmakers may spur losses in both markets.
Smaller U.S. companies are rallying the most since 2003 relative to the Standard & Poor’s 500 Index, a sign to BlackRock Inc. and JPMorgan Funds that the economy will strengthen and spur a third year of gains for investors.
The rout that erased $2.9 trillion from U.S. equities has pushed valuations in the Standard & Poor’s 500 Index 25 percent below the average level from the last nine recessions, even as profit estimates fall.