Yearly Archives: 2024

[ad_1] There is notable disagreement among academics about how investment time horizon should affect portfolio allocations. In recent research released through CFA Institute Research Foundation, we explored this topic at length. We find that the assumption that returns are independent over time is inconsistent with historical evidence, both domestically and […]

[ad_1] Aren’t They Risky? Many financial pundits assume so, and in terms of volatility and the risk of permanent principal impairment, they’re right. But contrary to popular perception, equities are not necessarily more risky than such supposedly “safe” assets as US Treasuries.  Let me explain. The US 10-year Treasury bond […]

[ad_1] Trust, in some form, is at the center of all financial transactions, and technology can enable and enhance that trust. How do we know? Because 50% of retail investors and 87% of institutional investors say greater use of technology in financial services has increased trust in their adviser/manager. That’s […]

[ad_1] Will the son of a billionaire perpetuate his inherited wealth? Apparently not, if history is any guide. In fact, there is strong evidence that most “rich families” will be poorer after several generations. Some of the reasons for this are systemic. Taxes, for example, chip away at a family’s […]

[ad_1] Investment performance is assessed on a risk-adjusted basis. But with financial markets growing ever more competitive, private capital fund managers have developed tools to reduce risk while protecting or even boosting their returns. These tools are aligned across two parameters: controls and economics. So, how do the control mechanisms […]