Risk

“A billion here, a billion there, and pretty soon you’re talking real money.” Used for decades to describe the perceived high and ever-increasing level of government expenditures, this memorable phrase of unclear origin may also offer insight for those building investment portfolios today. Consider a slightly modified version: Potential loss here, potential loss there, and pretty soon you’re talking real Risk, with a capital “R”.

Just about everyone from Warren Buffett on down to the casual investor is picking a side or weighing in on the debate over passive vs. active investing. But it’s not really an either/or proposition. The better approach is to understand how to most effectively incorporate each of these styles into creating a durable portfolio – because there are advantages to both.

Global investors have significantly pared back U.S. equity allocations as belief grows that the U.S. Federal Reserve will raise rates in the second quarter, according to the BofA Merrill Lynch Fund Manager Survey for March.

According to Sebastian Thomas, Head of US technology research and portfolio manager at Allianz Global Investors, artificial intelligence, robotics, self-driving cars, biotechnology, targeted medicine and many other innovations will ultimately impact all facets of our society. He believes successful investing in technology markets requires not only a deep understanding of the technology itself, but a careful consideration of these social factors as well.

Bond yields may not have bottomed out, and negative yields are not necessarily a bad thing for certain investors, says Robeco’s multi-asset investment head, Lukas Daalder.