Investing

[ad_1] Effective environmental, social, and governance (ESG) investing requires a balance between pursuing the mission and achieving the required returns. That means making decisions that are part art, part science. Strong ESG performance during the pandemic led to trillions of dollars in inflows. That buoyed the underlying philosophy and the […]

[ad_1] For more insights on the equity risk premium from Rob Arnott, Cliff Asness, Mary Ida Compton, Elroy Dimson, William N. Goetzmann, Roger G. Ibbotson, Antti Ilmanen, Martin Leibowitz, Rajnish Mehra, Thomas Philips, and Jeremy Siegel, check out Revisiting the Equity Risk Premium, from CFA Institute Research Foundation. “If we thought of […]

[ad_1] Most investable assets and strategies tend to cluster into two broad groups: productive and scarce. This is an important concept for the asset-owner-level portfolio construction and asset allocation process, since productive assets and scarce assets tend to have, respectively, concave and convex profiles with respet to the major risk […]

[ad_1] Where are rising interest rates a good thing? With inflation at 40-year highs, the US Federal Reserve lifted its target range for the federal funds rate by 25 basis points (bps) and projected six more increases in 2022. Currently, the fed funds futures market is pricing in a rise […]

[ad_1] The Financial Crisis of 2008: A History of US Financial Markets 2000–2012. 2021. Barrie A. Wigmore. Cambridge University Press. Barrie Wigmore analyzes an extremely complex topic, the financial crisis of 2008, with wide-ranging and deep analysis. He brings to bear a richly experienced point of view, based on working […]

[ad_1] Where is inflation going? US inflation hit 8.5% in March and is now at a 40-year high. COVID-19–related supply chain issues combined with the Russia–Ukraine war have driven energy prices up a staggering 32% in the latest report. And food prices are following, up 8.8% — the largest jump […]

[ad_1] In his keynote speech at the Ben Graham Centre’s 2024 Value Investing Conference in Toronto, Jason Zweig, a veteran columnist for The Wall Street Journal, asked, rhetorically: “What cannot be ETF’d?” Active investors are competing with Mr. Market, a.k.a. passive exchange traded funds, he stated. To generate meaningful alpha, […]

[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 […]