Investing

[ad_1] In Agatha Christie’s mystery novel Hallowe’en Party, a young guest who may have witnessed a murder drowns in an apple-bobbing basket. In the wrong place at the wrong time, the unfortunate partygoer’s fate is a metaphor for that of the unlucky investor who bites into a losing stock and […]

[ad_1] For more on artificial intelligence (AI) in investment management, check out The Handbook of Artificial Intelligence and Big Data Applications in Investments, by Larry Cao, CFA, from the CFA Institute Research Foundation. Performance and Data Despite its seemingly “magical” qualities, ChatGPT, like other large language models (LLMs), is just a giant […]

[ad_1] Daniel Kahneman earned the Nobel prize in economics for his research on prospect theory. His scholarship helped demonstrate how behavioral finance — and by extension, sentiment analysis — can improve our understanding of market behavior. Sentiment analysis applies algorithms to news articles, social media, and other data sources to […]

[ad_1] Validation of Risk Management Models for Financial Institutions: Theory and Practice. 2023. Edited by David Lynch, Iftekhar Hasan, and Akhtar Siddique. Cambridge University Press. Because of their high leverage, financial institutions need to maintain a strong focus on risk modeling, both for sound firm management and as a regulatory […]

[ad_1] US government money market funds have enjoyed record inflows this year as their 5%-plus yields — the highest in decades — and lower-risk status have obvious appeal for investors.  But we believe intermediate high-quality bonds may offer an important and compelling option for clients’ longer-term portfolio allocations thanks to […]

[ad_1] Innovation Drives Value Creation Innovation has always propelled economic progress and wealth creation. Investors once accessed the growth of groundbreaking companies through the stock market after these innovative firms went public. But the investment landscape has dramatically shifted in recent decades. Companies today often delay their initial public offerings […]

[ad_1] Forecasting inflation is a notoriously difficult business, which means we have to set expectations. After all, if I were a good inflation forecaster, I would probably be investing on it not writing about it. Modern economic theory posits that actual inflation depends on expected future inflation — that what […]

[ad_1] Readers clicked most on “Applying Economics — Not Gut Feel — to ESG” by Alex Edmans in 2023. The CFA Institute Research and Policy Center (RPC) focuses on four forward-looking research themes to drive content engagement, action, and outcomes. These themes are Capital Markets (Strengthening the Structural Resiliency of Capital Markets); Technology (Understanding the […]

[ad_1] 1. The 10 Greatest US Investors and the Virtues That Made Them Who are the greatest investors of all time? Andrew Mitchell, founder of Ophir Asset Management, asked ChatGPT to name the top 10. The artificial intelligence (AI) responded with its list. Mark J. Higgins, CFA, CFP, was intrigued […]

[ad_1] Future State of the Investment Industry draws the most clicks in 2023. The CFA Institute Research and Policy Center (RPC) focuses on four forward-looking research themes to drive content engagement, action, and outcomes. These themes are Capital Markets (Strengthening the Structural Resiliency of Capital Markets); Technology (Understanding the Latest Developments in Data Analytics, Technology, […]