Investing

[ad_1] “A business model is an outline of how a company plans to make money.” What do women around the world think is the most important component to their personal business model? Last year, I interviewed 53 accomplished women for my research paper “Smart Women: How Do They Make Money?” […]

[ad_1] A key trend in the options markets over the last 20 years is the decline in trading commissions. In the early aughts, many brokerage groups charged $10 a trade. That fell to $5 a trade in the 2010s, and today Robinhood and other platforms offer commission-free options trading. But […]

[ad_1] “Asset prices should equal expected discounted cashflows. Forty years ago, Eugene Fama (1970) argued that the expected part, ‘testing market efficiency,’ provided the framework for organizing asset-pricing research in that era. I argue that the ‘discounted’ part better organizes our research today. “I start with facts: how discount rates […]

[ad_1] Joachim Klement, CFA, is the author of Geo-Economics: The Interplay between Geopolitics, Economics, and Investments from the CFA Institute Research Foundation. In response to its invasion of Ukraine, Russia has been targeted with severe economic sanctions. How impactful will they be? We have yet to see a serious, data-driven […]

[ad_1] Book Review: The New World Economy in 5 Trends: Investing in Times of Superinflation, Hyperinnovation and Climate Transition. 2024. Koen De Leus and Philippe Gijsels. Lannoo Press. One kind of reader may be looking for a sober analysis of the economics of megatrends. Another may be looking for something […]

[ad_1] The benefits of factor investing as stand-alone strategies are well documented. Less well known is the positive impact factor strategies can have when they are added to institutional investors’ completion portfolios. By employing factor strategies at the plan level, asset owners can fine-tune their allocations to suit their specific […]

[ad_1] Causality is a feature of life, as it is for capital markets. It is time to accept this basic principle in investment management. Here is why and how. Why Causality Matters Causality has been defined in various ways in philosophy, statistics, economics, computer science, and other disciplines. As humans, […]

[ad_1] The Synergy Solution: How Companies Win the Mergers and Acquisitions Game. 2022. Mark L. Sirower and Jeffery M. Weirens. Harvard Business Review Press. “Poorly planned and executed acquisitions have almost certainly destroyed far more investment value than managerial acts of fraud.” Investors who remember massive fraud-related wealth destroyers such […]

[ad_1] Joachim Klement, CFA, is the author of Geo-Economics: The Interplay between Geopolitics, Economics, and Investments from the CFA Institute Research Foundation. The war in Ukraine is dominating the headlines. For now. But the conflict’s indirect reverberations will ripple far beyond the borders of its combatants and their allies. Indeed, they could give […]

[ad_1] “Change is the law of life. And those who look only to the past or present are certain to miss the future.” — John F. Kennedy From our first days in investment management, we are rightly cautioned against proclaiming, “This time is different.” While market history doesn’t repeat, it […]