CFA Institute Enterprising Investor

Behavior of Crowds not Wisdom of Crowds
Fri, 21 Jun 2024 16:54:50 +0000

When behavioral crowds are roiling the markets, as they are now, best idea active equity has an excellent chance of outperforming.

Is the Outright Ban on a US Central Bank Digital Currency (CBDC) a Mistake?
Thu, 20 Jun 2024 16:00:56 +0000

Instead of outright banning a US CBDC, wouldn’t it be preferrable to establish clear and enforceable legislative guardrails?

Concerned About Market Concentration and Lofty Valuations? Consider Small Caps
Wed, 19 Jun 2024 16:16:08 +0000

Investors are showing increased concern about large-cap stocks due to high market concentration and lofty stock valuations. Other factors combine to make a compelling case for small caps.

What Is Systems Thinking? A Primer with Applications for Sustainable Investing    
Tue, 18 Jun 2024 15:33:33 +0000

Systems thinking is gaining in popularity in many fields including economics, finance, and investment management. Learn what it means and how it's being applied to sustainable investing.

Book Review: My Value Creation Journey
Fri, 14 Jun 2024 17:04:30 +0000

Bartley J. Madden has produced a book that challenges business leaders and investment professionals to think outside the box systematically to solve difficult problems.

Private Markets’ Governance: A New Era
Fri, 14 Jun 2024 16:49:35 +0000

Now that the SEC Private Fund Adviser rules have been struck down, it's incumbent on the industry to demonstrate how private ordering can work.

The Interplay Between Cap Rates and Interest Rates
Thu, 13 Jun 2024 14:55:20 +0000

What is the relationship between cap rates and interest rates? It's not as straightforward as you may think.

Still Misperceived? A Fresh Look at Bitcoin Volatility
Wed, 12 Jun 2024 17:02:57 +0000

Is Bitcoin considerably more volatile than other asset classes? It's important to approach this question analytically and with an open mind because perceptions do not always match reality.

FX Bubbles: Through the Lens of Shiller and Sornette
Tue, 11 Jun 2024 18:20:08 +0000

The theories and models introduced by Robert Shiller and Didier Sornette are as applicable to the foreign exchange market as they are to the stock market.

Book Review: A Wealth of Well-Being
Fri, 07 Jun 2024 11:02:53 +0000

Finance practitioners can benefit from Meir Statman's challenge to make finance an “afterthought” and spend more time thinking about life well-being.

What’s Your Client’s Optimal Equity Allocation?
Thu, 06 Jun 2024 13:04:34 +0000

Note to investment advisors: You may be overestimating the risks of equities for conservative investors with longer investment horizons.

Gold and Inflation: An Unstable Relationship
Wed, 05 Jun 2024 11:07:47 +0000

While there are periods when gold has hedged inflation quite well, beware blanket claims of gold's inflation-hedging utility.

Monetary Policy and Financial Conditions: Meaningful Relationship?
Mon, 03 Jun 2024 11:01:47 +0000

An analysis of the Fed's recent rounds of quantitative tightening (QT) and quantitative easing (QE) yields actionable insights about the relationship between monetary policy and financial conditions.

Five Quotes from Financial History to Guide Trustees
Fri, 31 May 2024 12:59:54 +0000

If you serve as a trustee of an institutional investment plan, these five quotes may help guide your decisions for the benefit of those who depend on your stewardship.

Stocks for the Long Run? Setting the Record Straight
Thu, 30 May 2024 15:55:42 +0000

Stocks are a good investment long-term, providing that you dial in your expectations. New historical findings provide a richer, more complete understanding of international returns.

Rethinking Retirement Planning Amidst Aging Demographic Frontiers
Tue, 28 May 2024 19:32:49 +0000

Forward-thinking approaches to policy and wealth management are needed to ensure a better financial future across generations and income brackets.

Book Review: The New World Economy in 5 Trends
Fri, 24 May 2024 11:22:58 +0000

A diligent economist and an eclectic bookworm serve up an analysis of megatrends that will have the greatest impact on economies and investments: innovation, productivity, climate, multiglobalization, debt, and aging.

Factor Strategies Belong in Your Completion Portfolio Toolkit
Thu, 23 May 2024 18:09:25 +0000

Why wouldn't you include factor strategies in your completion portfolio? A review of the two commonly used approaches for managing institutional assets highlights their symbiotic nature.

For the Analyst: Peer Benchmarking Methods to Improve Earnings Forecasts
Tue, 21 May 2024 11:47:03 +0000

Peer benchmarking is a vexing task for financial analysts but one that is critical for forecasting earnings. This straightforward measure can help find peers for relative performance, compensation, and valuation benchmarking.

Building LLMs in the Open-Source Community: A Call to Action for Investment Professionals
Mon, 20 May 2024 15:26:58 +0000

Large language models like ChatGPT are changing the way we think about investing and reshaping roles in the investment profession.

Sustainability Reporting: Navigating Assurance Practices
Fri, 17 May 2024 16:57:16 +0000

Don't be lulled into a false sense of security by the word "assurance" when evaluating sustainability reports. Assurance practices vary, and investors would be wise to learn more about the different levels of coverage.

The Power of Clicks, Likes, and Shares: Promote the Right Kind of Financial Content
Thu, 16 May 2024 13:03:19 +0000

Not all financial content creators on social media are created equal. A broad differentiation can be made between influencers, knowledge sharers, and aspiring thought leaders.

Why the New T+1 Settlement Cycle Matters: A Global Index Provider’s Perspective
Tue, 14 May 2024 15:54:27 +0000

Shorter settlement periods are meant to protect market participants. But the new T+1 settlement cycle for US equities may have undesirable knock-on effects for financial market participants around the world, including index fund managers.

Leveraging AI to Identify and Predict Financial Crises
Mon, 13 May 2024 13:39:10 +0000

Despite some current limitations, AI stands to offer significant advantages versus traditional approaches to identifying and predicting financial crises.

Why Your Portfolio Should Include Scarce Assets
Fri, 10 May 2024 11:34:57 +0000

Portfolios that include both productive and scarce assets can deliver similar performance to the S&P 500 with less risk than those that hold only productive assets.

Coiled Tight: Smaller Companies Are Primed for Outperformance
Wed, 08 May 2024 11:40:07 +0000

Small-cap companies are poised for a rebound. The sector is best approached through an active investment strategy where expertise and a deep understanding of the individual businesses and their risk-and-reward characteristics are necessary for success.

Investment Returns Are NOT Random
Tue, 07 May 2024 13:22:43 +0000

Are investment returns random across time as Burton Malkiel suggests in his book, A Random Walk Down Wall Street? There is notable disagreement on this topic. This research finds that practitioners may need to rethink their portfolio optimization routines.

Generational Wealth: Does the Apple Fall Far From the Tree?
Mon, 06 May 2024 11:37:29 +0000

There is strong evidence that most “rich families” will be poorer after several generations. Some of the reasons for this are systemic like taxes. But most factors that diminish a family’s wealth over generations are the choices that heirs make.

State Capitalism in Private Markets: Mission Creep
Fri, 03 May 2024 11:30:37 +0000

Governments relish mingling in markets. Yet, if past policies are any guide, taxpayers are being shortchanged.

Implementation Shortfalls Hamstring Factor Strategies
Wed, 01 May 2024 10:16:53 +0000

Smart rebalancing rules help portfolio managers capture more of the return that is inherent in their factor strategies. Concentrating on “priority best” trading improves factor portfolio performance.

IFRS Accounting Standard Will Support Better Investment Decisions
Tue, 30 Apr 2024 10:34:40 +0000

IFRS 18 responds to investors' concerns about challenges in comparing companies' financial performance.

Meir Statman: Your State of Mind Influences Your Investing Success
Mon, 29 Apr 2024 11:58:38 +0000

Meir Statman shares his insights on the broader aspects of financial well-being and its interconnection with life satisfaction.

Book Review: Trailblazers, Heroes, and Crooks
Fri, 26 Apr 2024 13:00:00 +0000

Stephen Foerster, CFA, extracts lessons from exceptional episodes in financial history that ordinary investors and seasoned professionals alike can put to profitable use. The bonus is that you'll be entertained from start to finish.

What Price Risk? Unpacking the Equity Risk Premium
Wed, 24 Apr 2024 13:00:00 +0000

Stocks are a good wager over the long term, on favorable odds. But stocks remain a bet, and investors must grasp how much returns can vary over long time horizons.

Equity Income Investing Redux
Mon, 22 Apr 2024 16:19:00 +0000

No doubt the past year has been difficult for equity income investors. But history, inherent biases, mean reversion, and the current market backdrop point to a comeback.

Book Review: Enrich Your Future
Thu, 18 Apr 2024 17:07:34 +0000

This engaging book is simultaneously memorable and humorous. The numerous sports analogies will have you smiling as you absorb Larry Swedroe's unforgettable investment precepts.

CAPE Is High: Should You Care?
Wed, 17 Apr 2024 14:18:44 +0000

A simple analysis shows that Robert Shiller's cyclically adjusted price-to-earnings ratio changed in the 1990s and that mean-reversion concerns may be misplaced. If CAPE changed three decades ago, however, there is nothing preventing it from doing so again.

AI to the Rescue? Overhauling the US Power Grid on the Path to Net Zero
Mon, 15 Apr 2024 20:24:49 +0000

Once known as secure and profitable investments, utilities are now viewed as enterprises fraught with financial risks. Investors should favor utilities that employ AI and other digital strategies to minimize damage from natural disasters.

Does a Stock’s Price Influence Its Risk Profile?
Fri, 12 Apr 2024 12:00:00 +0000

As a stock falls in value, it becomes more sensitive to market movements and its total volatility increases.

Managing Regret Risk: The Role of Asset Allocation
Wed, 10 Apr 2024 12:04:00 +0000

Regret risk is a quantifiable phenomenon. The answer for some clients may be equally weighted portfolios.

The Art and Science of DC Plan Investment Design
Mon, 08 Apr 2024 12:00:00 +0000

Defined contribution plan sponsors need to take a disciplined approach to investment menu construction.

From the Archives: Daniel Kahneman on Better Decision Making
Fri, 05 Apr 2024 11:33:29 +0000

Daniel Kahneman shared four simple strategies for better decision making in finance and in life.

A Case for Broadening Retail Access to Private Markets
Thu, 04 Apr 2024 11:21:39 +0000

Retail investors may achieve more stable and diversified portfolios with allocations to private markets.

Exploring the Indian Startup Frontier
Wed, 03 Apr 2024 11:13:02 +0000

India's startup ecosystem is booming. Investors have more options than ever.

Don’t Bank on the Equity Risk Premium
Mon, 01 Apr 2024 17:10:02 +0000

Sometimes, regardless of the holding period, stocks do underperform in absolute terms or relative to bonds.

Book Review: The Ownership Dividend
Fri, 29 Mar 2024 10:43:05 +0000

Daniel Peris's new book advises investors that the tide is about to turn: favor dividends over share growth alone.

Looking for Gains in Private Equity? Tips for the Everyday Investor
Tue, 26 Mar 2024 11:43:56 +0000

More than 13% of American households now qualify to invest in private equity. Before diving in, everyday investors should be aware of a few important considerations.

The Remarkable Story of Style Regimes: For the Data-Driven Investor
Mon, 25 Mar 2024 18:39:02 +0000

Growth and value style returns are the market's veritable gulf stream, and investors should not ignore their powerful currents.

Book Review: Milton Friedman
Fri, 22 Mar 2024 10:46:12 +0000

Investment decision makers will derive both pleasure and professional enrichment from Jennifer Burns's Milton Friedman: The Last Conservative.

The Evolving International Cannabis Landscape
Wed, 20 Mar 2024 13:31:50 +0000

If you are entering the world of cannabis investment, look beyond the U.S. for growth and opportunities.

Actively Managed Credit Strategies Can Meet Impact Goals, Alpha Targets
Tue, 19 Mar 2024 14:05:00 +0000

Profitability and sustainability are not mutually exclusive in active credit strategies.

Climate Transition Risk in European Equity Markets
Fri, 15 Mar 2024 15:12:00 +0000

How can investors assess climate transition risk in their portfolios?

Can the Fed Pull Off a Soft Landing?
Wed, 13 Mar 2024 04:00:00 +0000

The yield curve is inverted, implying an imminent recession, but the stock market is at or near record highs. What can we make of these contradictory signals?

EAM: How and Why AI-Powered Active Management Will Dominate Passive
Wed, 13 Mar 2024 04:00:00 +0000

For active management to acquire sufficient alpha to eclipse passive, a paradigm shift driven by new technologies and new methods is required. That's where Ensemble Active Management (EAM) comes in.

Know Your Prospect (KYP): What’s in Their Portfolio and Why?
Fri, 08 Mar 2024 05:00:00 +0000

Using a potential client's existing portfolio as a diagnostic tool just might lead to a higher conversion rate.

Revolution and Risk: How to Pilot the AI Revolution
Wed, 06 Mar 2024 18:55:40 +0000

Previous market bubbles provide valuable lessons as we navigate the artificial intelligence revolution. They emphasize the need for a clear-sighted, cautious approach.

Climate Change Calculus: HNWIs and Sustainable Impact Investing
Tue, 05 Mar 2024 05:00:00 +0000

HNWIs understand that there is no backup planet to invest in or build on, and their capital allocations are beginning to align with that sentiment.

Times Change: The Era of the Private Equity Denominator Effect
Mon, 04 Mar 2024 16:02:00 +0000

How can investors address the denominator effect in private equities?

Venture Capital: Lessons from the Dot-Com Days
Fri, 01 Mar 2024 17:37:49 +0000

Start-up valuations have yet to fully reflect the market's ongoing downdraft. The correction could prove as protracted as that of the dot-com crash. 

Book Review: Markets in Chaos
Thu, 29 Feb 2024 13:40:30 +0000

Should history teach or merely inform? This question lies at the heart of Markets in Chaos, a broad yet succinct historical overview of macroeconomic crises around the world and across time.

Investing in U.S. Financial History: Three Principles, Three Excerpts
Tue, 27 Feb 2024 16:08:00 +0000

The "Paradox of Speculation" -- how securities speculation drives both pain and progress -- is among the key lessons of financial history.

2024 US Wealth Management Outlook: In with Alternatives?
Fri, 23 Feb 2024 17:56:00 +0000

The instability and uncertainty of recent years demonstrate how vital it is to look beyond traditional securities and embrace a flexible mindset.

AI’s Carbon Footprint: Balancing Innovation with Sustainability
Thu, 22 Feb 2024 21:02:00 +0000

The future of artificial intelligence (AI) should not just be smart, it must also be sustainable.

The Low-Volatility Factor and Occam’s Razor
Fri, 16 Feb 2024 17:17:00 +0000

Will the low-volatility premium continue to be the best-kept secret in financial markets?

Mergers and Acquisitions in 2024: Headwinds to Tailwinds?
Mon, 12 Feb 2024 22:05:00 +0000

With wide spreads, an improved playbook for assessing deal risk, and the potential for more M&A activity to materialize, 2024 could be a strong year for merger arbitrage performance. 

Mike Tang, CFA, CPA, on Spin-Off Listings in Hong Kong SAR
Mon, 12 Feb 2024 16:28:00 +0000

What's the appeal of spin-offs in general and in Mainland China and Hong Kong SAR, in particular? KPMG partner Mike Tang, CFA, CPA, shares his insights.

Book Review: The Four Pillars of Investing, Second Edition 
Fri, 09 Feb 2024 05:00:00 +0000

William J. Bernstein provides a comprehensive guide that offers important insights and practical strategies for creating and maintaining a successful investment portfolio.

Plan Sponsor Priorities for 2024: A Seven-Item Checklist
Thu, 08 Feb 2024 22:22:00 +0000

What topics in particular should defined contribution (DC) plan sponsors keep front of mind this year?

It’s Not Always the Economy: Five Questions to Gauge Financial Markets
Thu, 08 Feb 2024 16:18:00 +0000

The economy matters, but it matters differently to different investors depending on their distinct objectives, timelines, and asset allocation. And it’s not the only thing that matters.

ESG Investing and the Popularity Asset Pricing Model (PAPM)
Thu, 01 Feb 2024 22:00:00 +0000

When it comes to ESG investing, we have to agree that we don’t all agree. 

Bad Ideas: Why Active Equity Funds Invest in Them and Five Ways to Avoid Them
Thu, 01 Feb 2024 18:27:00 +0000

Most active equity funds do not underperform for lack of stock-picking skill. Rather the investment industry incentivizes them to manage business risk at the expense of long-term portfolio performance.

Monte Carlo Simulations: Forecasting Folly?
Mon, 29 Jan 2024 06:54:00 +0000

Forecasts in the form of Monte Carlo simulations are not the best way to anticipate a client's future portfolio returns.

The Unspoken Conflict of Interest at the Heart of Investment Consulting
Fri, 26 Jan 2024 01:10:00 +0000

While investment consultants may claim their advice is conflict-free — and their clients may believe them — it is often heavily biased by the investment consultants' own self-interest.

A More Robust Macro Risk Targeting Strategy for Equities
Fri, 26 Jan 2024 00:55:02 +0000

"It is possible to construct equity portfolios that possess out of sample exposure that facilitate more precise targeting of levels of macroeconomic risk exposure."

Decoupling Correlations: Global Markets since COVID-19
Thu, 25 Jan 2024 14:54:00 +0000

An examination of global stock market indices since 2015 reveals one clear takeaway: Every single index's average correlation with all other indices has fallen.

How to Build Better Low Volatility Equity Strategies  
Thu, 18 Jan 2024 19:05:21 +0000

Not all low volatility strategies are created equal. Many lack the diversification and risk control needed to guard against concentration and macro risk.

Climate Risk and the Future of US Commercial Real Estate
Wed, 17 Jan 2024 19:42:00 +0000

Climate risks and the CRE loan market have many points of intersection that spotlight the urgent need for community and regional banks to recalibrate their risk assessment frameworks.

Can Investor Activism Boost Small-Cap Stock Performance?
Fri, 12 Jan 2024 21:14:00 +0000

In the Financial Analysts Journal, Emmanuel R. Pezier and Paolo F. Volpin analyze a private dataset of a UK fund’s engagements with small-cap newly public firms and demonstrate that “behind-the-scenes” engagements resulted in 8% to 10% in cumulative abnormal returns.

US Cannabis Investing: An Overview
Mon, 08 Jan 2024 21:45:26 +0000

The cannabis industry constitutes a new frontier in investing and is ripe with growth opportunities.

Book Review: Investing in U.S. Financial History 
Fri, 05 Jan 2024 20:30:00 +0000

Mark J. Higgins, CFA, CFP's epic book offers invaluable context for forecasting the direction of the economy and the market.

Top 10 Posts from 2023: The 10 Greatest Investors, ChatGPT, and the Active Management Delusion
Tue, 26 Dec 2023 17:00:00 +0000

Enterprising Investor's most popular posts of the year include contributions from Mark J. Higgins, CFA, CFP, Larry Cao, CFA, Michinori Kanokogi, CFA, and Yoshimasa Satoh, CFA, among others.

Research and Policy Center Five Most Popular Articles of 2023: Sustainability
Tue, 26 Dec 2023 11:39:00 +0000

For sustainability-related content, readers clicked most on "Applying Economics — Not Gut Feel — to ESG" by Alex Edmans in 2023.

Research and Policy Center Five Most Popular Articles of 2023: Future of the Profession
Tue, 26 Dec 2023 06:19:00 +0000

The Future State of the Investment Industry report draws the most clicks in 2023.

The 60/40 Portfolio Needs an Alts Infusion
Thu, 21 Dec 2023 15:20:00 +0000

How can investors supplement the traditional 60/40 stock/bond portfolio with allocations to alternatives?

Private Equity: Five Lessons from the Global Financial Crisis
Wed, 20 Dec 2023 17:29:00 +0000

If a recession comes, how can the lessons of the global financial crisis (GFC) inform private equity practitioners?

Research and Policy Center Three Most Popular Articles of 2023: Data and Technology
Wed, 20 Dec 2023 14:38:00 +0000

Handbook of Artificial Intelligence and Big Data Applications in Investments, edited by Larry Cao, CFA, is the big winner in 2023.

The FX Swap Market: Growing in the Shadows
Fri, 15 Dec 2023 18:57:00 +0000

The foreign exchange (FX) swap market ought to be both transparent and well regulated. It is neither.

Research and Policy Center Five Most Popular Articles of 2023: Capital Markets
Fri, 15 Dec 2023 17:03:00 +0000

What are the most popular top five articles of 2023 published under the Capital Markets theme by the CFA Institute Research and Policy Center?

An Answer to “Crypto’s Unanswered Question: At What Price?”
Fri, 15 Dec 2023 16:58:00 +0000

A few foundational microeconomic assumptions and a discounted cash flow (DCF) framework can help inform crypto buy and sell decisions.

Mergers and Acquisitions in Quebec
Fri, 08 Dec 2023 18:08:00 +0000

What is behind the M&A bonanza in La Belle Province?

Let’s Talk Blockchain, Not “Crypto”
Wed, 06 Dec 2023 19:00:00 +0000

Disregard all the hype around crypto in general and bitcoin in particular. Blockchain represents the real opportunity that investors should be talking about.

Research and Policy Center 10 Most Popular Articles of 2023
Wed, 06 Dec 2023 03:10:00 +0000

What are the most popular top 10 articles of 2023 published by the CFA Institute Research and Policy Center?

Book Review: Poor Charlie’s Almanack
Thu, 30 Nov 2023 23:39:00 +0000

The rerelease of Charlie Munger’s bountiful wit and wisdom is a celebration of nearly a century of success and deserves to be at the top of our reading lists.

The Weakening US Consumer
Thu, 30 Nov 2023 21:28:00 +0000

The United States is a consumption-driven economy. But over the last half century, the US consumer has been weakening in the face of social and economic pressures.

Bitcoin Valuation: Four Methods
Thu, 30 Nov 2023 19:57:00 +0000

Unlike traditional assets such as stocks and bonds, bitcoin lacks the typical characteristics required for traditional valuation methods.

Book Review: Plunder
Sat, 25 Nov 2023 15:51:00 +0000

Brendan Ballou presents a meta-analysis of the worst of private equity investment practices, thus compelling investors to take a deeper look into their illiquid private equity commitments.

Do-It-Yourself High-Dividend Strategies
Mon, 20 Nov 2023 05:00:00 +0000

Investors do not have to accept lower returns in exchange for high dividend yields. In fact, do-it-yourself (DIY) high-dividend strategies can generate enviable income without sacrificing capital.

Book Review: These Are the Plunderers
Thu, 16 Nov 2023 18:21:00 +0000

The PE playbook is always the same: Borrow money to acquire the firm, saddle it with debt, and extract exorbitant management fees.

The Innovation Advantage: Private Market Investing
Mon, 13 Nov 2023 17:56:00 +0000

The potential advantages of private market investments, specifically venture equity and venture debt investing, extend to five dimensions of performance.

Return to Tradition? Three Reasons to Consider a Bond Allocation
Fri, 10 Nov 2023 07:23:00 +0000

As the Fed nears its terminal rate, bonds may reassume their traditional role as a portfolio “diversifier.”

Book Review: Validation of Risk Management Models for Financial Institutions
Fri, 03 Nov 2023 14:33:00 +0000

Validation of Risk Management Models for Financial Institutions, through a set of thoughtful articles, describes how effective structuring and testing of the modeling techniques used in risk management can support better financial decision making.

Sentiment Analysis Revisited
Wed, 01 Nov 2023 14:26:00 +0000

How can sentiment analysis help interpret and anticipate market behavior?

ChatGPT and Large Language Models: Their Risks and Limitations
Tue, 31 Oct 2023 16:17:00 +0000

Inaccessible data and the limits of computing power are only two of the obstacles holding LLMs back.

Trick or Treat? Bobbing for Multibaggers in the Small-Cap Market
Thu, 26 Oct 2023 04:00:00 +0000

Small-cap investing is a “negative art.” But in addition to steering clear of losers, small-cap investors have to demonstrate the “positive art” of picking winners.

How Can Family Offices Leverage Artificial Intelligence? Four Applications
Tue, 24 Oct 2023 18:17:00 +0000

AI will revolutionize family office operations. That's why each office must be intentional about its AI adoption formula, governance procedures, and long-term AI roadmap.

Five Reasons Why Writing Is the Most Underrated Investment Skill
Wed, 18 Oct 2023 14:52:00 +0000

Writing should serve an active role throughout our investment process. Here’s why.

Markets in Chaos: A Return to the Gold Standard?
Wed, 18 Oct 2023 12:48:00 +0000

The grand monetary experiment of the last decade and a half has undermined the global financial system and necessitates a radical solution.

Book Review: The Paradox of Debt
Fri, 13 Oct 2023 15:00:00 +0000

Dick Cheney said that “Reagan proved that deficits don’t matter.” Richard Vague suspects that Cheney may well have been right.

Harvesting Equity Premia in Emerging Markets: A Four-Step Process
Tue, 10 Oct 2023 14:51:00 +0000

There is hope for investors seeking a robust emerging market equity strategy to complement their other equity investments.

Portfolio Confidential: Five Common Client Concerns
Mon, 09 Oct 2023 04:00:00 +0000

What are the five most common client concerns and how can we address them?

Private Capital: Lessons from the Conglomerate Era
Wed, 04 Oct 2023 18:10:00 +0000

With their sprawling empires, the largest alternative asset managers have adopted strategies that borrow extensively from the octopus-like corporate conglomerate business model.

A Mixed Outlook? The Banking Sector and Its Three Key Drivers
Mon, 02 Oct 2023 16:24:00 +0000

To understand the mid- to long-term outlook for the banking sector, we need to understand the key drivers at work in the industry today.

The Alpha Capture Ratio: Rising Interest Rates Mean Pricier Alpha
Wed, 27 Sep 2023 17:36:00 +0000

What can hedge fund investors do to optimize the price they pay for alpha?

ChatGPT and Large Language Models: Syntax and Semantics
Mon, 25 Sep 2023 04:00:00 +0000

Today, ChatGPT and large language models (LLMs) more generally represent the next evolution in AI/ML technology. And that comes with a number of implications.

The Auto Sector’s Green Transition: Three Roads to Lower Returns?
Fri, 22 Sep 2023 16:53:00 +0000

Are investors fully factoring in enough investment risk from the green transition?

Small Caps: Party Like It’s 2000?
Thu, 21 Sep 2023 21:03:00 +0000

The legendary musician Prince exhorted us to “Party like it’s 1999,” but today, as a small-cap stock investor, I’d flip the calendar one year ahead, to 2000.

How Do Performance Metrics Correlate? Might Fund Managers Cherry-Pick?
Mon, 18 Sep 2023 04:00:00 +0000

With various performance metrics to choose among, might fund managers be tempted to cherry-pick those that reflect most favorably on their performance?

The Benefits of Using Economically Meaningful Factors in Financial Data Science
Mon, 11 Sep 2023 16:10:00 +0000

As machine learning (ML) and data science become ever more integrated into finance, which factors should we consider for our ML-driven investment models and how should we select among them?

Rethinking Corporate FX Hedging: Seeing the Forest through the Trees
Mon, 11 Sep 2023 04:00:00 +0000

Why are publicly traded companies so often blindsided by FX volatility?

Book Review: The Economics of the Stock Market
Fri, 08 Sep 2023 14:43:00 +0000

Now, more than ever, we urgently need a comprehensive alternative to the neoclassical model of stock market behavior. Andrew Smithers attempts to fill in this gap.

Project Finance: Beware Interest Rate Miscalculations
Thu, 07 Sep 2023 16:54:00 +0000

To navigate the storms of interest rate variability, we need foresight and flexibility.

Do Better ESG Ratings Boost Bond Holders?
Wed, 30 Aug 2023 17:54:00 +0000

Does the bond market view companies with better ESG ratings as better credit risks?

“Build, Partner and Buy”: AI and the New M&A Model
Wed, 30 Aug 2023 17:39:00 +0000

Amid the current artificial intelligence (AI) hype cycle, the M&A playbook has changed.

Myron Scholes on Black–Scholes, Decarbonization, AI, and Parenting
Mon, 28 Aug 2023 16:36:00 +0000

"If life were unchanging, then options would not be as valuable, but life is always changing, which makes options and the ability to deal with uncertainties very precious." — Myron Scholes

The Trouble with Forecasting Home Prices
Mon, 28 Aug 2023 04:00:00 +0000

Mortgage rates have doubled and tripled in some countries since 2021. So why aren't residential real estate markets more distressed?

Climate Change, Risk Management, and the Freedom to Invest Responsibly
Wed, 23 Aug 2023 17:03:00 +0000

The freedom to invest responsibly and the principle of risk management must be defended, and that requires us to go back to basics.

Crypto’s Unanswered Question: At What Price?
Wed, 23 Aug 2023 16:57:00 +0000

How do you make buy and sell decisions with cryptoassets? The answer remains elusive.

Crypto Rising? Beyond High Beta Equity and FTX
Tue, 22 Aug 2023 22:10:00 +0000

Expect increased crypto adoption in 2024.

Quit to Win? Six Reasons Why Winners Quit
Fri, 18 Aug 2023 16:22:00 +0000

Sometimes quitting is the right thing to do, whether it is leaving a city, a relationship, or, yes, even a career.

The First US Real Estate Bubble and Three Lessons from the Mount Tambora Eruption
Tue, 15 Aug 2023 13:54:00 +0000

How can the 1815 eruption of Mount Tambora inform investors today?

Debunking the Myth of Perfect Competition
Mon, 14 Aug 2023 16:14:00 +0000

Contrary to the orthodoxies of classical and neoliberal economics, free markets do not, and never did, create perfect competition.

Why Equity Factors? A 4×4 Goal-Based Perspective
Thu, 10 Aug 2023 18:20:00 +0000

The 4×4 Asset Allocation philosophy approaches every asset or strategy based on how it contributes to — or detracts from — Growth, Income, Preservation, and Liquidity. So, what does a goal-based approach to equity factors actually look like from this perspective?

Does Bond Market Data Yield Equity Alpha?
Thu, 10 Aug 2023 15:50:00 +0000

Equity portfolios constructed using bond momentum signals may outperform their traditional equity price momentum counterparts.

The Fitch Downgrade: The Principal–Agent Problem in Modern Finance
Wed, 09 Aug 2023 18:18:00 +0000

Fitch Ratings' US credit downgrade highlights a latent principal–agent problem in modern financial markets: Investors have outsourced much of their risk management to the rating agencies.

Book Review: The Power of Money
Fri, 04 Aug 2023 15:34:00 +0000

Paul Sheard explains what money is and how governments, commercial banks, and central banks create it and influence its creation.

Commercial Real Estate Today: A Four-Sector Outlook
Fri, 04 Aug 2023 14:54:00 +0000

What should investors be watching in the US CRE market? Will there be opportunities in the residential — multifamily, industrial, retail, and office sectors?

Resistance Training: Testing Market Resilience
Thu, 03 Aug 2023 14:00:00 +0000

Now may be a great time to stockpile excess capital to tactically deploy in the coming months if the opportunity set improves.

ESG Affirmations and Surprises: Asset Managers Look to the Future
Thu, 27 Jul 2023 19:47:00 +0000

ESG considerations are transforming how asset managers approach their jobs and serve their clients, according to the latest Index Industry Association (IIA) survey.

Fed Chair Congressional Testimony: Has the Market Played Favorites?
Tue, 25 Jul 2023 21:23:00 +0000

How have the markets responded to congressional testimony from recent Fed chairs? Have they shown a preference or distaste for any one in particular?

When Hindsight Becomes Foresight: Replicating Investment Performance
Mon, 24 Jul 2023 04:00:00 +0000

Most investment products simply provide exposure to the stock market in complicated wrappers.

The Predictive Power of the Yield Curve
Fri, 21 Jul 2023 18:42:00 +0000

The predictive power of the yield curve is a widely accepted causal narrative. But the history shows that the causal correlation between long and short rates is actually quite weak.

Book Review: The Worth of Art
Fri, 21 Jul 2023 13:41:00 +0000

The Worth of Art: Financial Tools for the Art Markets, by Arturo Cifuentes and Ventura Charlin, is indispensable for anyone making an initial foray into art as a vehicle for building wealth.

Commercial Real Estate Today: An Overview
Tue, 18 Jul 2023 14:47:00 +0000

How has the post-pandemic world of renewed geopolitical tensions, resurgent inflation, and rising interest rate pressures reshaped how real estate capital markets operate? Where is the commercial real estate (CRE) sector headed and how can investors respond?

Factor Portfolios and Cap-Weighted Benchmarks: Bridging the Tracking Error Gap
Fri, 14 Jul 2023 21:06:00 +0000

Can we retain the benefits and economically sound basis of a factor approach to equity investing while more closely aligning a factor portfolio’s performance to a cap-weighted benchmark?

Come Together: M&A Trends in Canada
Fri, 14 Jul 2023 20:23:00 +0000

Despite the global drought in M&A, bright spots remain — if you know where to look.

The 800-Pound Gorilla: Office Real Estate
Fri, 14 Jul 2023 18:18:00 +0000

"Office has replaced retail as the worst six letter word in real estate.”

Global Supply Chain Transformation: Uncertainty and Opportunity
Wed, 28 Jun 2023 21:37:00 +0000

Nearly two years into the global supply chain restructuring process, the economic data are revealing the consequences.

Distressed Debt: Which Sectors Offer Value?
Wed, 28 Jun 2023 12:43:00 +0000

The current environment may be the best that credit investors have seen in at least a generation.

A Global Proxy Voting Database: An Idea Whose Time Has Come?
Sat, 24 Jun 2023 15:27:00 +0000

The proxy voting system has taken on added importance amid growing interest in environmental, social, and governance (ESG) issues and how investors vote on related shareholder proposals. So, how can we improve it?

Stressed and Distressed Credit: Risk and Reward
Wed, 21 Jun 2023 17:27:00 +0000

As Warren Buffett said, “You only find out who is swimming naked when the tide goes out.” Well, the tide is going out and as businesses refinance at higher rates, default rates and distressed exchanges are likely to increase.

Book Review: What I Learned about Investing from Darwin
Fri, 16 Jun 2023 15:14:00 +0000

Pulak Prasad reframes the quest for long-term investment success from a focus on the tools we have to a focus on the outcomes we seek.

A Sea Change: Howard Marks, CFA, on the End of Easy Money
Tue, 13 Jun 2023 18:16:00 +0000

“I'm not saying that interest rates are going to go back up. I just think they're done coming down,” Howard Marks, CFA, told Marg Franklin, CFA. "And if that's true, I think we're in a different environment."

Rethinking the Economic Reality of Non-Cash Charges
Mon, 12 Jun 2023 21:18:00 +0000

We need to reconnect the economic implications of accounting for depreciation with goodwill amortization / impairment and other one-time charges.

A US GDP-Weighted Index?
Fri, 09 Jun 2023 20:59:00 +0000

How would an index constructed at the US country level that weights holdings by each sector's underlying GDP compare to the S&P 500 in terms of risk and performance?

Mindy Lubber: A Sustainability Story
Fri, 09 Jun 2023 20:53:00 +0000

Climate risk is financial risk, according to Mindy Lubber.

Quant Screening: Three Questions for Investment Managers
Mon, 05 Jun 2023 18:32:00 +0000

A relatively simple filter can serve as a helpful initial screen of potential investment managers, quants in particular.

Public Debt: Four Ways to Deleverage
Fri, 02 Jun 2023 22:18:00 +0000

Should governments ever decide to start deleveraging, how could they do it?

Active vs. Passive Revisited: Six Observations
Thu, 01 Jun 2023 13:49:00 +0000

Does it make sense to reframe the active vs. passive debate? Perhaps the question — active or passive? — is not the right one to ask.

ChatGPT and Large Language Models: Six Evolutionary Steps
Sat, 27 May 2023 00:14:00 +0000

What were the critical stages of LLMs' early development? Where is the technology headed? How will it transform investing?

Do Sentiment Metrics Matter to the Markets?
Thu, 25 May 2023 19:53:00 +0000

How much correlation is there between consumer and business sentiment metrics and market returns?

Digital Asset Markets: Five Important Themes
Tue, 23 May 2023 18:33:00 +0000

All risk assets face an uncertain macro future. But we can't forget the long-term asymmetric opportunity that digital assets may offer.

SEC Scrutiny of ESG-Related Disclosures: What to Expect
Thu, 18 May 2023 17:10:00 +0000

What should investors know about the SEC filing review process and how it may affect ESG-related disclosures?

Distress Investing: A Tale of Two Case Studies
Tue, 16 May 2023 19:17:00 +0000

With recession forecasted in many economies this year or next, distressed situations will be an important source of deals for prospective investors.

Regret and Optimal Portfolio Allocations
Fri, 12 May 2023 12:24:00 +0000

To understand risk for portfolio optimization purposes, we need to consider regret.

ChatGPT and Generative AI: What They Mean for Investment Professionals
Tue, 09 May 2023 17:28:00 +0000

How will all the ChatGPT- and LLM-related developments affect how investment professionals work?

The 10 Greatest US Investors and the Virtues That Made Them
Wed, 03 May 2023 16:43:00 +0000

Who are the greatest investors of all time?

Book Review: The Little Book of Picking Top Stocks
Fri, 28 Apr 2023 14:02:00 +0000

In this “little” book with big ideas, Martin Fridson, CFA, presents a novel approach that to date has not been systematized in such an evidence-based style.

ChatGPT: Copilot Today, Autopilot Tomorrow?
Thu, 27 Apr 2023 18:44:00 +0000

How can quant and fundamental analysts apply LLMs like ChatGPT? How effective a “copilot” can these technologies be?

Partnering for Impact: Institutional Investors and the Net-Zero Transition
Thu, 20 Apr 2023 10:14:00 +0000

A well-managed, low-carbon transition requires systemic change from all corners of the global economy.

Do the Best Equity Fund Managers Follow the Bond Market?
Tue, 18 Apr 2023 18:39:00 +0000

A fund family's success with bond funds may not translate to the equity side of the ledger.

Book Review: A History of Financial Technology and Regulation
Thu, 13 Apr 2023 13:59:00 +0000

Seth C. Oranburg highlights recent changes to the world of finance by exploring the role of technology within it.

Is the 60/40 Portfolio Still Relevant?
Wed, 12 Apr 2023 17:21:00 +0000

How do portfolios with asset allocations of 100% equity, 100% bond, 60/40, and 80/20 in the US, UK, Italian, Swiss, and global markets perform over time?

Rethinking Retirement Planning Outcome Metrics
Mon, 10 Apr 2023 17:51:00 +0000

Retirement, like life, is fundamentally uncertain. That's why we need to provide clients with more context about what missing their retirement-income goals might look like.

The Nuts and Bolts of Private Commercial Real Estate (CRE) Investing
Fri, 07 Apr 2023 23:00:00 +0000

What terms, metrics, and concepts do investors need to have under their belt to approach the CRE asset class?

Do ESG Funds Have Higher ESG Scores?
Fri, 31 Mar 2023 21:59:00 +0000

The first step in testing whether ESG funds deliver higher ESG scores is to determine what to compare them against.

Factor Performance: Will the Comeback Persist?
Fri, 31 Mar 2023 18:29:00 +0000

The relative outperformance of equity risk factors was one of 2022's rare bright spots.

The Active Management Delusion: Respect the Wisdom of the Crowd
Fri, 31 Mar 2023 17:31:53 +0000

"Neither the Financial Analysts as a whole nor the investment funds as a whole can expect to ‘beat the market,’ because in a significant sense they (or you) are the market."

Debunking the Myth of Market Efficiency
Fri, 24 Mar 2023 20:00:00 +0000

Market complexity transcends disciplines and cannot be entirely modeled out.

What ESG News Matters Most to the Market?
Wed, 22 Mar 2023 16:03:00 +0000

Not all ESG news events are associated with significant changes in stock price.

Myth-Busting: The Economy Drives the Stock Market
Fri, 17 Mar 2023 21:33:00 +0000

How much does the state of the economy really matter to stock market performance?

Is the Copper–Gold Ratio a Dependable Leading Indicator on Rates?
Thu, 16 Mar 2023 19:13:00 +0000

Earlier this year, the copper–gold ratio was, in Jeffrey Gundlach's words, “screaming that the 10-year should go lower.”

More Realistic Retirement Income Projections Require Dynamic Adjustments
Wed, 15 Mar 2023 14:45:38 +0000

How can we incorporate dynamic spending into retirement income projections?

How Do Smart Clients Invest in Themselves? Know Their “Why”
Thu, 09 Mar 2023 05:02:00 +0000

“Ultimately, there’s one investment that supersedes all others: Invest in yourself," Warren Buffett said. "Nobody can take away what you’ve got in yourself, and everybody has potential they haven’t used yet.”

Is Rising Income Inequality the 40-Year Bull Market’s Hidden Driver?
Tue, 07 Mar 2023 14:16:00 +0000

While traditional finance’s equity performance models still work, there is an alternative explanation for the long-running secular bull market.

ChatGPT: The Origins, the Hype, the Opportunity
Mon, 06 Mar 2023 17:08:00 +0000

For most investment managers, ChatGPT represents the starting whistle in a tech arms race many had hoped to avoid.

The Size Factor Matters for Actual Portfolios
Wed, 01 Mar 2023 18:59:00 +0000

The size factor contributes to portfolio diversification and risk control.

Shorting Lousy Stocks = Lousy Returns?
Mon, 27 Feb 2023 16:42:00 +0000

How has shorting lousy stocks worked as a strategy?

ChatGPT and the Future of Investment Management
Fri, 24 Feb 2023 19:07:00 +0000

So, do we human advisers and analysts stand any chance in the post-ChatGPT world?

The FX Global Code: Why Now Is the Time
Fri, 24 Feb 2023 18:57:00 +0000

As the FX market grows and evolves, more needs to be done to improve its functioning and integrity.

Agency Capitalism in Private Markets: Who Watches the Agents?
Thu, 23 Feb 2023 19:26:00 +0000

With the PE model’s high profitability, the industry’s ultimate development stage will inevitably feature leveraged buyouts of the fund managers themselves,

Decoding the Crypto Mindset with NLP: Bitcoin, Reddit, and FTX
Fri, 17 Feb 2023 21:34:00 +0000

How does crypto investors' reliance on social media drive crypto market behavior?

Can Tracking Error Boost Index Funds’ After-Tax Returns?
Fri, 17 Feb 2023 16:54:00 +0000

Do index funds with lower tracking error have better or worse post-tax performance?

Presidential Election Cycle Theory: A Bullish 2023?
Tue, 14 Feb 2023 20:17:00 +0000

What are the strengths, limitations, and nuances of presidential election cycle theory and what does the current political context foretell regarding whether 2023 will follow the predicted trend?

Redefining the Retirement Income Goal
Thu, 09 Feb 2023 15:49:00 +0000

Spending flexibility must be better incorporated into the tools and outcomes metrics with which financial advisers advise clients.

Book Review: The Enduring Value of Roger Murray
Thu, 09 Feb 2023 15:38:00 +0000

Paul Johnson and Paul D. Sonkin shed great light on the investment management industry’s evolution over the past 90 years — and how one luminous individual contributed so much to it.

Splitting the Risk: How to Manage Interest Rate Risk in Project Finance
Thu, 02 Feb 2023 17:39:00 +0000

How can the two primary stakeholders in project finance best allocate interest rate risk?

Decision Attribution: Portfolio Manager Skill vs. Past Performance
Tue, 31 Jan 2023 16:33:00 +0000

As portfolio managers, being able to show our investors — with data-driven evidence — that we know exactly what we are good at and the steps we are taking to improve goes a long way.

Bitcoin Mining and Local Stock Market Performance Correlations
Tue, 31 Jan 2023 05:00:00 +0000

Is there a relationship between where bitcoin is mined and how the performance of the local equity markets correlates with bitcoin prices?

Equity and Bond Correlations: Higher Than Assumed?
Mon, 30 Jan 2023 05:00:00 +0000

What correlations should we trust? Those based on daily or monthly return data?

DC Plan Sponsors: Seven Priorities for 2023
Thu, 26 Jan 2023 15:29:00 +0000

Plan sponsors have a vital responsibility to provide and manage retirement benefits on behalf of their employees. Here's what they need to focus on in 2023.

Have Central Bank Interventions Repriced Corporate Credit? Part 3
Wed, 25 Jan 2023 12:56:00 +0000

Is there a Fed put influencing US corporate credit markets?

Beyond Duration and Convexity: Eight Ways to Bond with Clients
Mon, 23 Jan 2023 18:53:00 +0000

Successful adviser-client relationships are built on more than just investment advice.

The Debt Ceiling: A Nation Divided and Indebted Cannot Stand
Fri, 20 Jan 2023 22:50:00 +0000

The current debt ceiling debate reveals a painful reality that the United States must confront.

Machine Learning and FOMC Statements: What’s the Sentiment?
Wed, 18 Jan 2023 22:12:00 +0000

What do machine learning and natural language processing reveal about Federal Open Market Committee statements?

2023 US Wealth Management Outlook: Tax Planning and Wealth Preservation
Sat, 14 Jan 2023 00:13:00 +0000

After a down year for financial markets, investors’ priorities have naturally shifted from growing their assets to preserving their wealth.

Can Argentina Recover? Emerging Market Lessons
Fri, 13 Jan 2023 23:30:00 +0000

To be “as rich as an Argentine” was once a common aspiration. What happened?

Short Squeezes: A Four-Factor Model
Sat, 07 Jan 2023 01:12:00 +0000

To determine whether a stock might become the target of a short squeeze, there are four criteria to keep in mind.

Have Central Bank Interventions Repriced Corporate Credit? Part 2
Fri, 06 Jan 2023 23:58:00 +0000

Is there evidence of an ECB put in European credit markets?

The Yen’s Downside Risk Persists Despite BOJ Shift
Wed, 04 Jan 2023 15:24:00 +0000

There is reason to be cautious about the nascent yen rally.

Diversity and Investment Performance: What Trade-Off?
Fri, 30 Dec 2022 20:15:00 +0000

Is there a trade-off between diversity and investment performance?

Top 10 Posts from 2022: Fama and French, Damodaran, the Equity Risk Premium
Fri, 30 Dec 2022 19:10:00 +0000

In a wild year for markets and investing, what EI content most resonated with readers?

ESG (In)Efficiency
Fri, 23 Dec 2022 00:00:00 +0000

Passive ESG investing has become increasingly active. It’s time for a rethink.

The Six Stages of Asset Bubbles: The Crypto Crash
Wed, 21 Dec 2022 22:09:00 +0000

Investors can protect themselves from the next bubble by recognizing the trajectory that most follow.

Evaluating Benchmark Misfit Risk
Mon, 19 Dec 2022 17:39:00 +0000

How can we identify and measure a portfolio's benchmark misfit risk?

What Can AI Do for Investment Portfolios? A Case Study
Thu, 15 Dec 2022 23:19:00 +0000

One AI equity trading model hints at the technology's potential to transform investment management.

Frontier and Emerging Markets: Inflection Points
Tue, 13 Dec 2022 16:18:00 +0000

Should we be adjusting our allocations to emerging or frontier markets?

Myth-Busting: Alts’ Uncorrelated Returns Diversify Portfolios
Fri, 09 Dec 2022 14:51:00 +0000

Do alternatives offer any diversification benefits?

Private Markets: Guardians at the Gate?
Fri, 09 Dec 2022 14:31:00 +0000

Regulatory reform in the private markets should focus on five areas.

Every Day Is Tax Day: Five Tax Strategies for HNW Clients
Thu, 08 Dec 2022 19:38:00 +0000

Our clients' taxes and the tax-savings strategies we can devise for them should be on our minds year-round.

Will They, or Won’t They? The Risk of Betting on the Fed
Thu, 01 Dec 2022 15:15:00 +0000

Recent market volatility has been driven by speculation about what the Fed will do next.

ESG Fixed-Income Exposure: Index Providers Respond to Asset Manager Demand
Wed, 30 Nov 2022 16:56:00 +0000

The rapid expansion of ESG indexes continues to gain momentum and diversify across asset classes.

Have Central Bank Interventions Repriced Corporate Credit? Part 1
Mon, 28 Nov 2022 05:00:00 +0000

Have the Fed's and ECB's purchases of corporate bonds permanently altered the pricing of corporate credit risk?

FTX: Crypto Is the Cure, Not the Cause
Wed, 23 Nov 2022 00:37:00 +0000

The FTX fiasco has more to do with fractional reserve banking than it does with crypto.

Manager Selection: The Power of Payoff
Mon, 21 Nov 2022 22:06:00 +0000

The most important portfolio manager skill metric is often overlooked.

The Alchemist’s Paradox, Central Bank Sovereignty, and the Fate of Crypto
Thu, 17 Nov 2022 22:00:00 +0000

“It is difficult not to marvel at the imagination which was implicit in this gargantuan insanity. If there must be madness something may be said for having it on a heroic scale.” -- John Kenneth Galbraith

How Do Cryptocurrencies Correlate with Traditional Asset Classes?
Wed, 16 Nov 2022 22:09:00 +0000

The crypto market’s recent gyrations necessitate a fresh look at the evolving relationships between crypto and traditional asset classes.

How Goals-Based Portfolio Theory Came to Be
Wed, 16 Nov 2022 17:33:00 +0000

Investing is never done in the abstract. Investing is — and always has been — goals-based.

Conservatism: De-Risking the Profitability Factor
Thu, 10 Nov 2022 20:50:00 +0000

By combining Profitability and Conservatism, we can reduce a portfolio's downside risk and enhance its risk-adjusted returns over the long run.

Bonds and Fixed Income: Where’s the Hedge?
Thu, 03 Nov 2022 21:38:00 +0000

When have fixed-income assets actually done what portfolio managers and investors expect them to do?

Asset Owners “COP” In on Climate Change
Wed, 02 Nov 2022 20:27:00 +0000

As COP27 is set to kick off, 85% of asset owners believe ESG is “very” or “fairly” material to investment policy.

Sector and Factor Performance in Wartime
Tue, 01 Nov 2022 19:40:00 +0000

How do stocks -- specifically sectors and factors -- perform during times of war?

Valuing Digital Assets with TradFi Tools: Three Methods
Tue, 25 Oct 2022 21:20:00 +0000

Not all traditional investment management techniques are applicable to digital assets, but sector breakdowns, DCF models, and risk factor modeling are solid starting points.

Tricks of the Private Equity Trade, Part 2: Leverage
Fri, 21 Oct 2022 18:11:00 +0000

The essence of maximizing the internal rate of return (IRR) lies in the total amount of leverage contracted to finance a transaction.

Strong or Volcker? The Fed and Global Financial Stability
Fri, 21 Oct 2022 16:12:00 +0000

The impact of Fed policy on the global financial system is yet another feature of the COVID-19 pandemic that caught investors off guard.

Can Machine Learning Help Predict the Next Financial Crisis?
Thu, 20 Oct 2022 20:00:00 +0000

Machine learning can inform financial crisis modeling.

Book Review: Demographics Unravelled
Thu, 20 Oct 2022 17:25:00 +0000

Amlan Roy reviews how the study of population affects many of our core investment and policy decisions.

Eight Reasons Why Africa Is Primed for Impact Investing
Fri, 14 Oct 2022 15:11:00 +0000

Africa presents an almost limitless opportunity for investors looking to do well and do good.

Does Artificial Intelligence Steal Human Jobs?
Fri, 14 Oct 2022 15:00:00 +0000

Should we be worried about the jobs that might be lost to machines?

Tricks of the Private Equity Trade, Part 1: Value Drivers
Tue, 11 Oct 2022 18:00:00 +0000

PE firms have a repertoire of tools at their disposal to achieve their target returns.

Growth, Value, and Skewness: Are Growth Stocks a Lottery-Like Bet?
Fri, 07 Oct 2022 14:37:00 +0000

How does skewness in returns relate to other factors in asset pricing?

The Witch of October Is Here: Remember Short-Term Pain = Long-Term Progress
Wed, 05 Oct 2022 16:05:00 +0000

The month of October strikes fear in the hearts of many Wall Street veterans — and for good reason.

War and Ethics: What Are the Investment Community’s Responsibilities?
Mon, 03 Oct 2022 14:22:00 +0000

The investment community needs to develop common standards to apply when conflicts like the Russia–Ukraine War break out.

Book Review: Investing in the Era of Climate Change
Fri, 30 Sep 2022 18:00:00 +0000

Bruce Usher identifies both what the implications of climate change are for the investment community and how investment capital allows us “to save us from ourselves.”

How to Future-Proof Your Career: T-Shaped Skills
Fri, 30 Sep 2022 13:50:00 +0000

Where should we focus our personal development so that it has the maximum benefit?

Is the Euro Uninvestable? The FX Question du Jour
Thu, 22 Sep 2022 21:39:00 +0000

A reduction of the ECB's balance sheet and a serious effort to achieve positive real interest rates will be key to ensuring a turnaround in the fortunes of the EUR/USD.

The Inflation Game: War, Peace, and the Perils of Central Banking
Thu, 22 Sep 2022 20:20:00 +0000

Recession is now a virtual inevitability.

Equity Risk Premium Forum: MMT, Looking Back, Looking Ahead
Thu, 22 Sep 2022 16:00:00 +0000

"There’s one aspect of MMT that I have some sympathy for: the notion that what we spend money on is far more important than how we finance it." — Cliff Asness

Book Review: Purpose and Profit
Fri, 16 Sep 2022 14:32:00 +0000

The importance of ESG factors has been accelerated by the COVID-19 pandemic, making George Serafeim's book essential reading.

New Breed of Private Capital Firms Will Face Performance Headwinds
Thu, 15 Sep 2022 21:06:00 +0000

A challenge awaits PE firms that amass funds to expand beyond their core competency.

The Fed’s “Time of Testing”: Is This Where the Trouble Will Stop?
Tue, 13 Sep 2022 15:34:00 +0000

“This is a time of testing -- a testing not only of our capacity collectively to reach coherent and intelligent policies, but to stick with them.” -- Paul Volcker

Equity Risk Premium Forum: The Stock/Bond Correlation Switch-Up
Thu, 08 Sep 2022 18:52:00 +0000

"Has the hedge property overtaken the investment property of fixed-income assets?"

ESG Criteria: Global Asset Managers Expand Their Embrace
Wed, 07 Sep 2022 19:37:00 +0000

ESG factors are even more important to global asset managers today than they were a year ago, according to the latest Index Industry Association (IIA) survey.

How to Talk to Clients about Inflation
Tue, 06 Sep 2022 04:00:00 +0000

Clients have concerns about inflation. Here are a few tips to approach these conversations.

A Natural Capital Approach to Sustainable Investing: A Tribute to Pitta
Tue, 30 Aug 2022 22:12:00 +0000

The pitta bird is a rare sight in tropical forests, even to the trained eyes of birdwatchers. Yet there she was, perched on the window of my condo, in a busy metropolis.

Cochrane and Coleman: Quantitative Easing and Asset Price Dynamics
Mon, 29 Aug 2022 23:02:00 +0000

"Wall Street wisdom is that QE is immensely powerful and is stoking financial bubbles. Academics say, 'I take your $100 bills, I give you back 10 $10 bills. Who cares?'"

Powell Prescribes More Economic Pain: Three Financial History Lessons Support His Diagnosis
Mon, 29 Aug 2022 19:00:00 +0000

“The first lesson is that central banks can and should take responsibility for delivering low and stable inflation,”

Book Review: The Case for Long-Term Value Investing
Fri, 26 Aug 2022 19:15:00 +0000

Jim Cullen presents the value strategy and explains how to apply it in any type of market.

Demand Destruction? Two Reasons to Be Skeptical
Fri, 26 Aug 2022 17:45:00 +0000

Demand destruction does not guarantee disinflation.

A Tale of Two Suits: The Three Capitals of Career Success
Fri, 26 Aug 2022 01:51:00 +0000

Eric Sim, CFA, explains how human capital, financial capital, and social capital helped build his career in finance.

Equity Risk Premium Forum: Gloom Looms?
Fri, 19 Aug 2022 12:40:00 +0000

“How many here think the next 10-year equity returns are going to be below the long-run average? I certainly do. Is there anyone here who doesn’t?”

Machine Learning Algorithms and Training Methods: A Decision-Making Flowchart
Thu, 18 Aug 2022 18:41:00 +0000

How can you determine what machine learning approach to apply?

Outperformance Ain’t Alpha
Mon, 15 Aug 2022 04:00:00 +0000

Outperformance and alpha are not exactly the same thing. So, how do we explain the difference?

The Eye of the Storm: The Fed, Inflation, and the Ides of October
Fri, 12 Aug 2022 14:36:00 +0000

The inflation storm may have passed. But don't bet on it.

Fundamental Value Revisited? Three Investing Tips for “Absolutely Crazy” Conditions
Thu, 11 Aug 2022 15:22:00 +0000

What do we do in an environment where fundamentals begin to take a backseat to public policy?

COVID-19 Correlations: Local Cases, Local Returns?
Mon, 08 Aug 2022 14:30:00 +0000

Do local COVID-19 case counts have any correlation with local stock returns?

Book Review: The Future of Money
Fri, 05 Aug 2022 19:56:00 +0000

Eswar S. Prasad provides an interesting and insightful exposition on the shifting landscape from traditional paper notes to digital currencies.

Pensions, Crypto, and Trust: Digital Assets and Retirement Funds
Thu, 04 Aug 2022 04:00:00 +0000

Many pension funds are exploring allocations to cryptoassets. What does that mean for the future of trust in the financial services industry?

“Round-Tripping” Stocks and the Absurdity of Hedge Fund Fees
Mon, 01 Aug 2022 04:00:00 +0000

Just how out of whack are hedge fund fees?

Book Review: Convertible Securities
Fri, 29 Jul 2022 15:30:00 +0000

Tracy V. Maitland, F. Barry Nelson, CFA, and Daniel G. Partlow's book "presents quantitatively sophisticated valuation methods and trading strategies, invoking terms of art that will be new even to many seasoned practitioners."

Equity Risk Premium Forum: Term Structure, Mean Reversion, and CAPE Reconsidered
Fri, 29 Jul 2022 14:38:00 +0000

Does the equity risk premium (ERP) vary depending on the term structure? Does reversion to the mean dictate that it will decrease the longer the time horizon?

Women’s Wealth and Technology: Three Themes for the Future
Tue, 26 Jul 2022 13:57:00 +0000

How will technology influence women's wealth in the years ahead?

Navigating Systemic Risks: Ukraine, Climate, and Crypto
Thu, 21 Jul 2022 04:00:00 +0000

Simon Johnson considers systemic risk today and how we can counteract it.

Angela Duckworth: The Power of Grit
Fri, 15 Jul 2022 14:44:00 +0000

What's more important to success — talent or effort?

Book Review: The Revolution That Wasn’t
Thu, 14 Jul 2022 21:46:00 +0000

Spencer Jakab argues that Wall Street, not the everyday retail investor, won the meme stock revolution.

Cochrane and Coleman: How Do You Solve Inflation?
Thu, 14 Jul 2022 21:00:00 +0000

"The economic problem now is to control inflation and get to work on the supply side of the economy."

Digital Gold or Fool’s Gold: Is Crypto Really a Hedge against Equity Risk?
Tue, 12 Jul 2022 04:00:00 +0000

When it comes to hedging equity risk, bitcoin and cryptocurrencies are less "digital gold" and more fool's gold.

Crypto Tokens: Does Security Selection Matter? 
Mon, 11 Jul 2022 04:00:00 +0000

What role does security selection play in cryptocurrency investing? Can token pickers demonstrate differentiated performance?

From No to Yes: Persuading Clients with the 3Ps Method
Fri, 08 Jul 2022 18:28:00 +0000

What is the 3Ps method? And how can it transform rejection into approval?

Economic Value of Equity (EVE): Protection from Rising Interest Rates
Thu, 07 Jul 2022 14:03:00 +0000

Economic value of equity (EVE) can help determine how well a company can weather interest rate hikes.

Not All NAVs Are Created Equal
Wed, 06 Jul 2022 15:54:00 +0000

How can investors price NAV valuations and efficiently transfer their eventual risk?

Book Review: Your Essential Guide to Sustainable Investing
Fri, 01 Jul 2022 15:48:00 +0000

Larry Swedroe and Samuel Adams's book is a good starting point for those seeking to understand the history and current practices of sustainable investing.

DC 2.0: Three Paths to More Equitable Retirement Programs
Tue, 28 Jun 2022 15:19:00 +0000

How can we create better retirement outcomes for employees and help our organizations achieve DEI-related goals?

The Financial Adviser Value Proposition: The Five Components
Tue, 28 Jun 2022 04:00:00 +0000

What can we do for our clients that they can’t do on their own? What can make us better at managing their money than they are?

The Fed Isn’t Bluffing: The Real Threat of an Upside-Down Depression
Thu, 23 Jun 2022 17:15:00 +0000

Paul Volcker restored the Fed's credibility through suffering. The Fed's leadership knows that it must pursue a similar course today.

Book Review: The Price of Time
Thu, 23 Jun 2022 04:06:00 +0000

Almost unique among serious finance books, Edward Chancellor’s The Price of Time serves well as bedtime reading.

Cochrane and Coleman: The Fiscal Theory of the Price Level and Inflation Episodes
Wed, 22 Jun 2022 14:52:00 +0000

John H. Cochrane and Thomas S. Coleman discuss how the fiscal theory of the price level explains inflation.

Asset Owner Perspectives: Building Investment Organizations Fit for the Future
Fri, 17 Jun 2022 16:20:00 +0000

How are asset owners thinking about and building their multi-generational, long-horizon portfolios?

The Equity Advantage: Reinvestment of Earnings
Fri, 17 Jun 2022 14:32:00 +0000

Equities can compound in value in a way that investments in bonds, real estate, and other asset classes cannot.

The Private Capital Wealth Equation, Part 2: The Economics Variable
Wed, 15 Jun 2022 15:16:00 +0000

The performance of alternative asset managers is encapsulated in the formula: Wealth = Controls + Economics. Here, we outline the economics component of the equation.

Nuclear Conflict: Why We Must Consider the Risks
Fri, 10 Jun 2022 17:04:00 +0000

In the wake of Russia’s attack on Ukraine, the risks of nuclear conflict have become clearer both inside and outside the world of finance.

The Next 75 Years: Will Generalists or Specialists Prevail?
Thu, 09 Jun 2022 16:03:00 +0000

To generalize or specialize? Seventy-five years after CFA Institute was established, how should investment professionals and aspiring investment professionals approach the choice?

DeFi-ing the Rules: Five Opportunities and Five Risks of Decentralized Finance
Tue, 07 Jun 2022 12:38:00 +0000

Campbell Harvey explains why DeFi has such transformative potential.

How Sharp Is the Sharpe Ratio? An Analysis of Global Stock Indices
Fri, 03 Jun 2022 16:33:00 +0000

To test the Sharpe Ratio’s effectiveness, we constructed monthly return distributions for global stock market indices to see if any had too much skewness.

Extremely Successful? Extremely Lucky!
Thu, 02 Jun 2022 17:40:00 +0000

What's more critical to investing success: luck or skill?

Renewable Energy Funds: Through a Gender Lens
Tue, 31 May 2022 20:05:00 +0000

As ESG investing continues to grow, applying a gender lens to public equity funds focused on climate solutions is critical.

Tell Me a Story: Aswath Damodaran on Valuing Young Companies
Tue, 24 May 2022 15:51:00 +0000

When valuing companies, "You don't have to be right to make money," Aswath Damodaran says. "You just have to be less wrong than everybody else.”

Building a CAPM That Works: What It Means for Today’s Markets
Tue, 24 May 2022 15:23:00 +0000

The capital asset pricing model (CAPM) is a marvel of economic scholarship. The problem is that it doesn’t always work in practice. So, we fixed it.

Scenario Planning and Net-Zero
Mon, 23 May 2022 17:11:00 +0000

When it comes to the net-zero transition, energy investors must consider various outcomes since the outcomes are, well, so various.

Book Review: Asset Allocation
Fri, 20 May 2022 20:21:00 +0000

William Kinlaw, Mark Kritzman, and David Turkington offer advice on a wide range of asset allocation topics, backing up their recommendations with solid quantitative analysis.

Lessons in Behavioral Bias: The COVID-19 Equity Markets
Fri, 20 May 2022 12:45:00 +0000

The pandemic-era stock markets have been a showcase of behavioral biases in action.

The Private Capital Wealth Equation, Part 1: The Controls Variable
Tue, 17 May 2022 16:19:00 +0000

Private capital fund managers have developed tools to reduce risk while protecting or even boosting their returns.

How Technology Enhances Investor Trust
Fri, 13 May 2022 20:03:00 +0000

Trust, in some form, is at the center of all financial transactions, and technology can enable and enhance that trust.

Why Invest in Stocks?
Wed, 11 May 2022 21:06:00 +0000

Equities are not necessarily more risky than such "safe" assets as US Treasuries. 

Hedging the Interest Rate Hiking Cycle
Tue, 10 May 2022 20:26:00 +0000

Amid rampant inflation and rising interest rates, how can we protect ourselves from interest rate volatility, from anticipated and unanticipated hikes?

Book Review: The Financial Crisis of 2008
Fri, 06 May 2022 04:01:00 +0000

Barrie Wigmore analyzes an extremely complex topic, the financial crisis of 2008, with wide-ranging and deep analysis.

Higher Interest Rates: Some Hedge Fund Strategies May Benefit
Thu, 05 May 2022 21:26:00 +0000

Rising interest rates will provide a tailwind to three hedge fund strategies, in particular.

Equity Risk Premium Forum: The Deficient Market Hypothesis
Fri, 29 Apr 2022 19:23:00 +0000

"If we thought of the equity premium as a fear premium," Rob Arnott says, "a lot of the so-called anomalies that we’ve talked about would not be anomalies at all."

ESG Integration: Lessons from US Insurers
Tue, 26 Apr 2022 18:13:00 +0000

What are US insurers saying and doing around ESG?

Crypto Tokens and Crypto Coins: What Drives Performance?
Mon, 25 Apr 2022 04:00:00 +0000

The correlation between volume and price of crypto coins and tokens is negligible no matter how it's measured.

Geopolitical Shock: Regime Change in Inflation and Monetary Policy
Thu, 21 Apr 2022 20:28:00 +0000

As cracks develop along geopolitical fault lines, new barriers could emerge to disrupt global trade.

Closing the Gap: Gender Lens Investing and the Future of Finance
Thu, 21 Apr 2022 20:07:00 +0000

Gender lens investing may be the most powerful approach to achieving gender parity in finance and investment.

What If the US Government Were Valued Like a Company?
Mon, 18 Apr 2022 21:36:00 +0000

If the US government were a normal company, it would have had to declare bankruptcy long ago.

Book Review: Damsel in Distressed
Fri, 15 Apr 2022 14:53:00 +0000

Dominique Mielle provides an authentic, firsthand account of a long, rising, uninterrupted career at a single firm during the heyday of the hedge fund industry.

Portfolio Diversification: Harder Than It Used to Be?
Mon, 11 Apr 2022 16:02:00 +0000

Ever-greater access to world equity markets should have made it easier for investors to build and harvest the benefits of diversified global stock portfolios. But has it really?

More Than Just Oil: Saudi Arabia’s Improved Credit Rating
Mon, 11 Apr 2022 13:37:00 +0000

Contrary to the popular narrative, oil isn't all that matters to the Saudi economy.

Equity Risk Premium Forum: Don’t Bet Against a Bubble?
Fri, 08 Apr 2022 04:00:00 +0000

Cliff Asness, Rob Arnott, Roger G. Ibbotson, and other luminaries explore the nature of bubbles and the momentum factor.

The EU Artificial Intelligence Act and Financial Services
Wed, 06 Apr 2022 15:33:00 +0000

With the publication of the AI Act, the EU has boldly gone where no other regulator has gone before.

Drowning in the Private Equity Pool
Tue, 05 Apr 2022 17:53:00 +0000

What's most surprising about aggregated private market performance calculations? How deeply flawed they are.

Book Review: In Pursuit of the Perfect Portfolio
Fri, 01 Apr 2022 21:11:00 +0000

Andrew Lo and Stephen Foerster offer a checklist of seven principles by which investors can construct their own “perfect portfolios.”

Turkey: The Trouble with Debt-Driven Growth
Fri, 01 Apr 2022 19:29:00 +0000

Turkey's economic travails provide a cautionary tale for other developing nations.

China’s Enterprise Annuities: “Long-Term Money, Short-Term Investment”
Tue, 29 Mar 2022 04:00:00 +0000

The operation of enterprise annuities in China suffers from a "long-term money, short-term investment" mindset.

Crypto Mania, Financial Contagion, and the “Goldilocks Zone”
Fri, 25 Mar 2022 17:43:00 +0000

The crypto craze will make for a fascinating case study in the annals of financial history.

A Paradigm Shift in Investing — Are You Ready?
Tue, 22 Mar 2022 18:03:00 +0000

When it comes to ESG, DEI, and advances in data and technology, this time really is different.

The Russia–Ukraine War and Other Geopolitical Risks
Fri, 18 Mar 2022 16:25:00 +0000

The spillover effect of the Russia-Ukraine War will increase food prices and geopolitical risk throughout the world.

Book Review: The Synergy Solution
Thu, 17 Mar 2022 04:00:00 +0000

Mark L. Sirower and Jeffery M. Weirens subject traditional analyses of M&A transactions to well-warranted scrutiny.

Causality Techniques in Investment Management: Five Key Findings
Wed, 16 Mar 2022 12:15:00 +0000

What are the most widely used causality tests in the equity markets?

How Long Can Russia Withstand the Sanctions?
Tue, 15 Mar 2022 16:59:00 +0000

The toll of the economic embargo on Russia will be enormous.

Time-Varying Risk Premia: Cochrane’s “Discount Rates”
Fri, 11 Mar 2022 16:55:00 +0000

"Discount rates vary a lot more than we thought. Most of the puzzles and anomalies that we face amount to discount-rate variation we do not understand."

Options Markets: How Far Have Implied Transaction Costs Fallen?
Wed, 09 Mar 2022 19:20:00 +0000

Options trading's explicit costs have plummeted to near zero, but what about implied transaction costs?

Women and Money Making: What’s Your Business Model?
Tue, 08 Mar 2022 05:00:00 +0000

In celebration of International Women’s Day 2022, Barbara Stewart, CFA, shares how women in various countries and cultures think about business models.

Book Review: Trillions
Fri, 04 Mar 2022 22:00:00 +0000

Robin Wigglesworth has produced a book that is historical, entertaining, and thought-provoking.

Alternative Investments: Predictable Uncertainty in Private Markets
Thu, 03 Mar 2022 15:16:00 +0000

While analytical judgment is considered universal in science, in finance investment decisions are derived from mental heuristics.

Bridging the Fundamental–Quant Divide
Tue, 01 Mar 2022 14:07:00 +0000

Where is the common ground between quant and fundamental investing?

Book Review: Better than Alpha
Fri, 25 Feb 2022 19:29:00 +0000

This book provides the insights and tools investors need to improve their investing outcomes.

Retirement Income: Six Strategies
Fri, 25 Feb 2022 16:55:00 +0000

How can we mitigate sequence of returns risk (SoRR)?

On Investment Objectives and Risks, Clear Communication Is Key, Part 3
Wed, 23 Feb 2022 17:49:00 +0000

Portfolio Pi and Portfolio Eta are new decision metrics that connect investment objectives and risks.

Book Review: How Novelty and Narratives Drive the Stock Market
Thu, 17 Feb 2022 21:11:00 +0000

This detailed stock market study attempts to extend Robert Shiller’s development of narrative economics.

Is Blockchain Just a Transition Technology?
Wed, 16 Feb 2022 17:51:00 +0000

Will quantum computers break the blockchain?

Saudi Arabia’s Journey to Sustainable Sovereign Debt
Mon, 14 Feb 2022 13:38:00 +0000

What does the Saudi Arabian National Debt Management Center's debt strategy look like?

Tactical Asset Allocation: The Flexibility Advantage
Thu, 10 Feb 2022 22:22:00 +0000

The end of the loose money era may offer an opportunity for tactical asset allocation.

Private Equity: Market Saturation Spawns Runaway Dealmaking
Wed, 09 Feb 2022 16:06:00 +0000

Private equity is settling into a rent-extracting, self-dealing trade.

Technical Analysis Revisited: Moving Averages = Above Average Returns?
Tue, 08 Feb 2022 05:00:00 +0000

How have moving averages performed as an investment strategy over the decades?

2022 US Wealth Management Outlook: All Aboard the Crypto Train?
Fri, 04 Feb 2022 16:08:00 +0000

Almost three quarters of HNWIs worldwide have expressed confidence in crypto.

The US Investment Olympics: Smart Money, Crowd Intelligence, and AI
Thu, 03 Feb 2022 15:15:00 +0000

Can our Smart Money, Crowd Intelligence, and AI indices beat the S&P 500?

Spotlight on SPACs: More Risk Than Opportunity?
Mon, 31 Jan 2022 17:00:00 +0000

SPACs may be worth another look. A long, careful look.

The Elephant in the Room: The ESG Contradiction
Fri, 28 Jan 2022 20:13:00 +0000

The inherent conflict between the "E," the "S," and the "G" in ESG investing can no longer be ignored.

How to Master Social Media: Seven Tips to Attract More Followers
Tue, 25 Jan 2022 21:18:00 +0000

What's the secret to building your followers on social media?

On Investment Objectives and Risks, Clear Communication Is Key, Part 2
Tue, 25 Jan 2022 17:01:00 +0000

Standard deviation fails to characterize risk in a way that matters to most investors.

Book Review: Nothing but Net
Fri, 21 Jan 2022 16:22:00 +0000

This book provides 10 invaluable lessons that investors can use to pick tech stocks in years to come.

Myth-Busting: ETFs Are Eating the World
Fri, 21 Jan 2022 14:07:00 +0000

What effect has passive investing, including ETFs and index-tracking mutual funds, had on the US stock market?

Investing’s First Principles: The Discounted Cash Flow Model
Wed, 19 Jan 2022 15:40:00 +0000

The DCF model is not only relevant to today’s market, it remains an absolute necessity.

Book Review: Expectations Investing
Fri, 14 Jan 2022 18:32:00 +0000

This revised and updated edition offers an insightful framework for identifying gaps between price and value.

The S-Curve: Bending the J-Curve in Private Equity
Fri, 14 Jan 2022 16:47:00 +0000

The J-curve narrative in private equity (PE) investments deserves a quiet obsolescence.

Fama and French: The Five-Factor Model Revisited
Mon, 10 Jan 2022 15:43:00 +0000

How well has Fama and French's five-factor model explained returns?

Progress in Economics
Fri, 07 Jan 2022 21:22:00 +0000

How has the consensus among economists on such issues as deficit spending and population growth shifted over the decades?

Women and Investing: Six Questions Answered
Fri, 07 Jan 2022 21:05:00 +0000

How have women changed their investing habits since the pandemic went global?

How to Master Social Media: Five Tips for Writing Well
Tue, 04 Jan 2022 15:25:00 +0000

What does it take to write captivating and engaging social media posts? Eric Sim, CFA, shares some essential pointers.

Book Review: Undiversified
Tue, 28 Dec 2021 05:00:00 +0000

The book is highly useful not only to women but also to other groups that are underrepresented in investment management.

Top 10 Posts from 2021: The Buffett Indicator, GameStop, Inflation!
Mon, 27 Dec 2021 05:05:00 +0000

What articles drew the most readers in 2021? Aswath Damodaran on the COVID crucible, career tips from Eric Sim, CFA, and more.

Green and Renewable Energy: Not So Fast?
Tue, 21 Dec 2021 19:31:00 +0000

Our carbon neutral future may be a long way off.

Are Reindeer Good Stock Pickers?
Mon, 20 Dec 2021 05:00:00 +0000

Beating a passive benchmark is hard. And that's true for both reindeer and people.

Put Your Money Where Your Mouth Is: Vegetarian and Vegan Investing
Sun, 19 Dec 2021 15:40:00 +0000

Might financing vegetarian products be the game changer that moves our consumer habits in a more sustainable direction?

On Investment Objectives and Risks, Clear Communication Is Key, Part 1
Fri, 17 Dec 2021 19:05:00 +0000

Identifying investment objectives and achieving stakeholder buy-in is the critical first step in connecting these objectives to portfolio construction.

How to Master Social Media: Consistency
Thu, 16 Dec 2021 05:00:00 +0000

The strategic use of social media can help you build your personal brand.

Dan Joldzic, CFA: Natural Language Processing in a Big Data World
Mon, 13 Dec 2021 05:00:00 +0000

"We are living in a Big Data World," Dan Joldzic, CFA, says. "No single analyst or team of analysts can capture all the information on their positions."

Book Review: Asset Allocation and Private Markets
Fri, 10 Dec 2021 18:58:00 +0000

Even investors who operate exclusively in public markets can benefit from the book’s thoughtful and sometimes unconventional takes.

Modern Variants of Capitalism, Part 3: Digital Capitalism
Thu, 09 Dec 2021 18:41:00 +0000

Digital capitalism has transformed our lives into a new commodity: personal data.

Gender Diversity in the Board Room: The Firm Size Factor
Mon, 06 Dec 2021 18:22:00 +0000

Smaller is better when it comes to reaping the benefits of gender diversity in the corporate board room.

Inclusive Leadership: Seven Keys to a 21st-Century Skill
Fri, 03 Dec 2021 14:50:00 +0000

Developing an inclusive culture is the right thing to do ethically. It also makes good business sense.

Inflation: What If It Doesn’t?
Thu, 02 Dec 2021 16:26:00 +0000

Joachim Klement, CFA, expects inflation to fall. But that doesn't stop him from asking, What if I'm wrong?

Passive vs. Active Management: Three Myths in DC Plan Strategy Selection
Tue, 30 Nov 2021 14:17:00 +0000

Actively managed strategies should have a place at the core of well-designed retirement plans.

Machine Learning: Explain It or Bust
Fri, 26 Nov 2021 16:44:00 +0000

Interpretability is paramount in machine learning.

Book Review: Boom and Bust
Mon, 22 Nov 2021 21:33:00 +0000

This book is an achievement not only for its historical detail but also for supplying a unifying framework that can be applied to any future bubble event.

4×4 Asset Allocation: Four Goals over an Investment Horizon
Mon, 22 Nov 2021 05:00:00 +0000

Assets and liabilities in any portfolio should contribute to liquidity maintenance, income generation, preservation of capital, and growth.

Modern Variants of Capitalism, Part 2: Financial Capitalism
Thu, 18 Nov 2021 19:05:00 +0000

In financial capitalism, wealth is transaction-based rather than operational.

Growth in Sustainable Indices Proves Sustainable
Tue, 16 Nov 2021 21:58:00 +0000

The number of indices measuring ESG criteria continues to spike, Rick Redding, CFA, reports.

When Indices Are Cut: What Withdrawals Teach about Risk-Control Index Design
Mon, 15 Nov 2021 17:11:00 +0000

Carriers sometimes withdraw an index from further investment. How can advisers explain such a decision to clients?

Dow 36,000! Crypto $3 Trillion! Charting a Wild Decade in Finance
Fri, 12 Nov 2021 17:29:00 +0000

Dow 36,000, crypto, Brexit, GameStop, pandemic. Imagine you uttered these terms back in the autumn of 2011, when Enterprising Investor first launched. What would they have evoked?

ESG Disclosure: How Can External Assurance Help Build Trust?
Tue, 09 Nov 2021 15:53:00 +0000

ESG assurance must replicate the knowledge and experience of external audit while avoiding its pitfalls.

The Mirage of Direct Indexing
Mon, 08 Nov 2021 05:00:00 +0000

Direct indexing seems like a free lunch that is too good to pass on. But is it?

Book Review: The Caesars Palace Coup
Thu, 04 Nov 2021 21:00:00 +0000

Max Frumes and Sujeet Indap provide a fascinating inside account of the distressed debt markets, including the strategies, the colorful personalities, and the complex relationships.

Chinese and World Stock Market Co-Movements: Two Findings
Tue, 02 Nov 2021 12:25:00 +0000

How have correlations between the Shanghai Composite Index and the Hang Seng and their global counterparts developed over the last 25 years?

Evergrande: Not So Grand Financial Statements?
Mon, 01 Nov 2021 04:00:00 +0000

Risks can be known in advance. You just need to be curious enough.

Market Resiliency, Capital Formation, and Investing for Our Future
Fri, 29 Oct 2021 02:16:00 +0000

The story of the markets over the last 10 years has been one of remarkable change. Yet economies are still struggling.

Female Advisers: Five Reasons Why They’re a Better Fit Than Ever
Tue, 26 Oct 2021 04:00:00 +0000

What are women investors asking their investment advisers as we emerge from the global pandemic?

Modern Variants of Capitalism, Part 1: Classical Capitalism and Shareholder Capitalism
Mon, 25 Oct 2021 04:00:00 +0000

Today, capitalism knows four configurations, Sebastien Canderle writes. The two examined here are inherited and adapted from previous eras.

Skills That Set You Apart as an Investor: Creativity
Fri, 22 Oct 2021 14:01:00 +0000

For success in investing, cognitive skills provide the foundation, but creativity gives you that something extra that sets you apart.

The Next Big Thing: The Age of Fintech, AI, and Big Data
Wed, 20 Oct 2021 15:02:00 +0000

To celebrate Enterprising Investor’s 10-year anniversary, Larry Cao, CFA, curates our collection of fintech, AI, and big data coverage.

Index + Factors + Alpha, ESG: Financial Analysts Journal Editor’s Snapshot
Mon, 18 Oct 2021 04:00:00 +0000

The last Financial Analysts Journal issue of 2021 features examinations of machine learning. tax-loss harvesting, and more.

Passive Management: The Baseline for Defined Contribution Plan Sponsors?
Fri, 15 Oct 2021 22:00:00 +0000

If active managers cannot add value, then passive is the preferred position, not the other way around.

Sustainability, ESG, and the Future of Investing: A Review
Tue, 12 Oct 2021 21:10:00 +0000

This curated collection of Enterprising Investor's ESG coverage showcases the key sustainability issues through the perspectives of both ESG proponents and critics.

Less Efficient Markets = Higher Alpha?
Mon, 11 Oct 2021 04:00:00 +0000

Shouldn't less efficient capital markets with greater information asymmetries offer more alpha opportunities?

The Future of Networking: Five Tips to Enhance Your Digital Presence
Thu, 07 Oct 2021 04:00:00 +0000

Your digital presence can help fortify your network.

Gender Lens Investing: Asset Managers and Women in Leadership
Wed, 06 Oct 2021 18:27:00 +0000

Global asset managers have a range of stewardship policies and statements in place to support growth in corporate women in leadership (WIL). But is it enough?

10 Years of Behavioral Finance: Thaler, Kahneman, Statman, and Beyond
Tue, 05 Oct 2021 15:11:00 +0000

Since its launch in 2011, Enterprising Investor has showcased the scholarship of behavioral finance’s top luminaries as well as its critics.

The Future of Work for a Post-COVID Investment Industry
Fri, 01 Oct 2021 14:20:00 +0000

The future of work has already arrived for investment professionals.

When Assets “Disappear,” Climate Risk and ESG Data Needs Remain
Thu, 30 Sep 2021 21:00:00 +0000

Once sold by major public firms, fossil fuel assets don’t disappear. Neither does the need for relevant, reliable risk disclosure.

Actively Managed Funds Are Appropriate Options for 401(k) Plans
Wed, 29 Sep 2021 20:00:00 +0000

Actively managed funds can serve plan participants well.

Book Review: Beyond Diversification
Thu, 23 Sep 2021 18:50:12 +0000

The range of tools that Sébastien Page, CFA, sets out in this book can help investors make better decisions.

Does Guru Investing Work?
Wed, 22 Sep 2021 21:04:11 +0000

A new investment style has proliferated over the last decade or so: the copycat investor.

Did Corporate Bond ETFs Kill the “Alpha Stars”?
Tue, 21 Sep 2021 20:02:03 +0000

The race for scale among active managers in response to low-cost ETF competition may be self-defeating.

Passive Funds and “Do No Harm” Are Not Synonymous
Wed, 15 Sep 2021 14:59:11 +0000

The notion that choosing active or passive will in some way lower fiduciary risk is unfounded.

Greenwashing at a Tipping Point: Marketing Jargon Brings Regulatory Risk
Wed, 15 Sep 2021 14:54:41 +0000

The environmental, social, and governance (ESG) fund industry reached a crossroads on 26 August 2021.

Four Considerations for Strong Investment Policy Statements
Tue, 14 Sep 2021 21:22:04 +0000

If you ran your IPS through a stress test, would it be strong enough to withstand the pressure?

Equal- vs. Market Cap-Weighted Portfolios in Stock Market Crashes
Fri, 10 Sep 2021 12:32:09 +0000

How have equal- and market-cap weighted US equity portfolios performed relative to one another during downturns?

Book Review: 21st Century Investing
Thu, 09 Sep 2021 15:30:13 +0000

William Burckart and Steve Lydenberg, CFA, argue persuasively that systemic issues have important implications for future returns.

Perpetual Debt Is Already Here
Wed, 08 Sep 2021 15:11:37 +0000

The costs and risks associated with debt have shifted from the borrower to the lender.

Revisiting Beta: How Well Has Beta Predicted Returns?
Wed, 01 Sep 2021 04:00:12 +0000

Are CAPM and beta effective predictors of future returns?

Concentration Risk on the Buy-Side of Credit Markets: The Causes
Tue, 31 Aug 2021 04:00:17 +0000

What are the effects of buy-side concentration on the structure of the corporate bond market?

“Alpha-Flation”: A Private Market Syndrome
Fri, 27 Aug 2021 05:01:15 +0000

Why does investing in the "average" private market fund seem to go so poorly?

Book Review: Warren Buffett
Tue, 24 Aug 2021 19:22:54 +0000

This should not be a one-time read but rather a guide for the rest of one’s investing career.

ESG Asset Managers: Define the Why
Tue, 24 Aug 2021 15:25:37 +0000

Clients today want their investments to produce a genuine positive impact as well as a return. Asset managers need to define how they plan to do that.

Vineer Bhansali: Negative-Yielding Bonds and Options
Mon, 23 Aug 2021 04:00:04 +0000

Anything that you want to price in finance has three key inputs, Vineer Bhansali says.

Benchmarking Has Become Circular
Wed, 18 Aug 2021 04:00:20 +0000

Benchmarking a company against its peers tends to be the quickest path to mediocrity.

Eric Sim, CFA: The Diversified Career Portfolio
Tue, 17 Aug 2021 14:56:29 +0000

Diversification is just as critical to career portfolios as it is to investment portfolios.

Inflation Will Fall, But Not Far Enough
Mon, 16 Aug 2021 16:05:42 +0000

We can expect the surge in US inflation to subside. But not enough to help ailing consumers.

Book Review: Algo Bots and the Law
Thu, 12 Aug 2021 04:00:52 +0000

Gregory Scopino provides a deeply detailed journey through the history of futures and derivative markets regulation.

ESG Ratings: Navigating Through the Haze
Tue, 10 Aug 2021 04:00:13 +0000

How severe is the lack of correlation among ESG ratings?

Meme Stocks and Systematic Risk
Mon, 09 Aug 2021 04:00:09 +0000

How do meme stocks move relative to stock market indices and other meme stocks?

Vineer Bhansali: What’s Wrong with Negative Yields?
Thu, 05 Aug 2021 04:00:02 +0000

A negatively yielding bond violates a very basic, fundamental principle: the time value of money.

Three Ways to Drive Compliance Software Adoption at Finance Firms
Wed, 04 Aug 2021 04:00:59 +0000

How can compliance teams earn employee buy-in, encourage software adoption, and lower their firm’s risk?

Monetary and Fiscal Policy Post-COVID-19: Four Themes
Tue, 03 Aug 2021 05:30:30 +0000

Rob Arnott, Joyce Chang, and Louis-Vincent Gave offer their perspectives on the policy landscape and its implications for investment strategy.

The Future of AI and Big Data: Three Concepts
Wed, 28 Jul 2021 04:00:46 +0000

Andrew Lo and Ajay Agrawal explore how biases, regulations, and economics and wealth distribution will shape the future of fintech.

Quality Losses Matter More to Investors Than Quality Gains
Tue, 27 Jul 2021 04:00:55 +0000

How does the stock market collectively respond to quality losses versus quality gains?

Animal Pandemics: An Overlooked Risk?
Mon, 26 Jul 2021 04:00:13 +0000

When an animal pandemic hits, the results for investors are not pretty.

Book Review: The Day the Markets Roared
Wed, 21 Jul 2021 04:00:25 +0000

Henry Kaufman shows that he was an innovator in the analysis of financial markets.

The Fed’s Blindspot on Global Inflation Drivers
Tue, 20 Jul 2021 04:00:15 +0000

What is driving the surge in inflation and how are central banks misplaying their hand?

Myth-Busting: Equities Are an Inflation Hedge
Mon, 19 Jul 2021 04:00:52 +0000

How can investors hedge against inflation risk? Do equities offer any protection?

Volmaggedon, Decarbonizing Everything: Financial Analysts Journal Editor’s Snapshot
Thu, 15 Jul 2021 04:00:20 +0000

Financial Analysts Journal managing editor Heidi Raubenheimer, PhD, CFA, provides a synopsis of the latest issue.

ESG: Full Speed Ahead, with GPS
Tue, 13 Jul 2021 04:00:45 +0000

The Index Industry Association (IIA) surveyed 300 asset managers about how they perceive ESG.

Low- or High-Volatility: Which Wins the Return Battle?
Mon, 12 Jul 2021 04:00:07 +0000

Are low-volatility or high-volatility strategies the better choice when it comes to equity returns?

“Your Network Is Your Net Worth”: Seven Tips to Propel Your Career
Wed, 07 Jul 2021 16:17:10 +0000

Your social capital grows as the people you help today advance their careers and step into more senior roles tomorrow.

Viewing Technology Stocks through a Gender Lens
Wed, 07 Jul 2021 04:00:41 +0000

How are the FANGMAN and other tech stocks performing from a gender lens perspective?

Pointless Market Equivalence? If Not the IRR, Why the PME?
Mon, 05 Jul 2021 04:00:38 +0000

The public market equivalent (PME) does not reflect the economic reality of private equity investing.

A Pillar of Modern Finance Turns 50
Thu, 01 Jul 2021 04:00:23 +0000

Quick, what is 1 July 2021 the 50th anniversary of?

Herd and Illusory Superiority Bias: Why Even Seasoned Investors Succumb
Tue, 29 Jun 2021 04:00:29 +0000

How do we check our investment decisions for signs of herd mentality, illusory superiority, or any other bias?

Strategic Asset Allocation or: How I Learned to Stop Worrying and Love the Dispersion
Mon, 28 Jun 2021 04:44:50 +0000

The old adage that allocation determines 90% of performance is rapidly becoming outdated.

Green Carrots and Sticks: Incentivizing Climate Solutions
Wed, 23 Jun 2021 15:37:58 +0000

If the carrots are tasty and the incentives are right, oil and mining companies will gladly invest in green technologies.

Down the Rabbit Hole: A Cryptocurrency Primer
Tue, 22 Jun 2021 13:22:46 +0000

Bitcoin and cryptos are not suitable for all investors, but the world of digital assets may be more than a passing fad.

Avoiding Disaster with Catastrophe Bonds?
Mon, 21 Jun 2021 12:27:43 +0000

What role might catastrophe bonds, or cat bonds, play in a diversified portfolio?

A Framework to Drive ESG Financial Discipline
Fri, 11 Jun 2021 18:59:58 +0000

A focus on intangible value creation can bring more financial discipline to ESG investments.

Book Review: Corporate Governance and Responsible Investment in Private Equity
Thu, 10 Jun 2021 17:01:37 +0000

Simon Witney provides a groundbreaking overview of effective governance and responsible investment in private equity.

Fixed-Income Allocations: Where To?
Thu, 10 Jun 2021 04:00:35 +0000

How should investors shift their fixed-income portfolios amid the US economic recovery?

The Next Frontier of Sustainable Investing: Measuring Impact
Wed, 09 Jun 2021 18:23:53 +0000

What is the state of ESG analysis and how can investors both have an impact and invest with impact?

Blockchain and DeFI: Drivers of Change in Asset Management
Tue, 08 Jun 2021 04:00:49 +0000

“We’re still in the very early days of DeFi,” Mona El Isa says. “But this time is much more exciting. We’re seeing real usage and traction."

Institutional Portfolio Benchmarks: Slow Rabbits?
Mon, 07 Jun 2021 04:00:36 +0000

When it comes to their benchmarking practices, US public pension funds need to find faster rabbits to chase.

Counting the Cost of Capital and Seeding Network-Based Accounting
Thu, 03 Jun 2021 04:00:10 +0000

Cost of capital is a tenuous concept. Charlie Munger amusingly calls it a “perfectly amazing mental malfunction.”

Tax-Smart Management of Your Muni Portfolio
Wed, 02 Jun 2021 04:00:06 +0000

Tax-smart portfolio valuation signals opportunities to improve after-tax performance by recognizing losses.

Permanent Capital: The Holy Grail of Private Markets
Tue, 01 Jun 2021 16:01:02 +0000

The goal of private equity is to be impervious to the vagaries of the economic cycle and to outside interference.

Michael Lewis on the US Pandemic Response: Misaligned Incentives
Thu, 27 May 2021 18:05:01 +0000

Why did the United States fail in its pandemic response?

Buybacks and Dividends: Sizing the Upswing
Thu, 27 May 2021 13:49:09 +0000

Dividends and buybacks are poised for a comeback this year.

Women and Investing: Five Myths
Mon, 24 May 2021 04:00:50 +0000

What are some of the major misconceptions about women and investing?

James H. Freis, Jr., CFA: The Rise and Fall of Wirecard
Wed, 19 May 2021 22:59:30 +0000

A key lesson from the "Enron of Germany": If you see something, say something.

Dan Heath: Three Barriers to Upstream Thinking
Wed, 19 May 2021 00:20:45 +0000

"When no one owns a problem, it probably won't get solved."

To Invest Internationally, or Not — That Is the Question
Tue, 18 May 2021 04:01:49 +0000

We should lean toward investing in all of the world all of the time.

In Memoriam: David Swensen
Thu, 13 May 2021 21:53:12 +0000

With David Swensen's passing, the financial community has lost one of the most important investors of modern times.

Wealth Management in the Algocen Era: A Speculative Future
Thu, 13 May 2021 04:00:04 +0000

What will portfolio management look like in 2038?

Improving the Odds of Value Investing
Mon, 10 May 2021 04:00:20 +0000

So what is the value factor's key performance driver? Based on what evidence?

Book Review: The Technological Revolution in Financial Services
Fri, 07 May 2021 13:46:42 +0000

The book provides a roadmap on how the financial industry will evolve in response to three structural forces.

Peak Diversification: How Many Stocks Best Diversify an Equity Portfolio?
Thu, 06 May 2021 18:27:55 +0000

Optimal diversification in equity portfolios varies by style.

GameStop, Artificial Intelligence, Social Media, and the Future of Investing
Wed, 05 May 2021 22:03:44 +0000

The GameStop story represents a shift in the balance of power and with it the future of investing and social media.

Book Review: Valuation
Thu, 29 Apr 2021 04:00:09 +0000

The authors set out the core principles of valuation and offer a guide to measuring a company's value.

Joachim Klement, CFA: Three Geo-Economics Trends to Watch
Tue, 27 Apr 2021 13:07:01 +0000

The rise of China, climate change, and cyberthreats will shape the 2020s, Joachim Klement, CFA, predicts.

SPACs: An Uncorrelated Asset Class?
Mon, 26 Apr 2021 04:00:40 +0000

Do special-purpose acquisition companies (SPACs) offer any diversification benefits?

The True Value of Your Muni Portfolio
Thu, 22 Apr 2021 18:15:13 +0000

Viewing your muni portfolio through a tax-smart lens will open your eyes to its true after-tax value.

The Short, the Index, and the Private Markets
Wed, 21 Apr 2021 15:00:34 +0000

There is no valid benchmark for the unlisted private equity sector. That needs to change.

Myth-Busting: Money Printing Must Create Inflation
Mon, 19 Apr 2021 04:00:34 +0000

Shouldn't all the recent monetary and fiscal stimulus lead to higher inflation? Maybe not.

Active Equity: “Reports of My Death Are Greatly Exaggerated”
Thu, 15 Apr 2021 16:06:34 +0000

Is active equity poised for a new golden era?

SPAC Fever: Clear and Present Danger?
Tue, 13 Apr 2021 14:42:16 +0000

How do special-purpose acquisition companies (SPACs) serve public investors?

Building Optimized Portfolios with JPMorgan’s 2021 Forecasts
Mon, 12 Apr 2021 16:00:23 +0000

Even as equity markets set all-time highs and bond yields near generational lows, it is still possible to build resilient portfolios with reasonable return expectations.

Zero Emissions Vehicles: Making Sense of the Transition with SASB Standards
Fri, 09 Apr 2021 04:00:48 +0000

Responses to SASB performance metrics can enhance financial analysis as the transition from gas-powered vehicles evolves.

Book Review: Machine Learning for Asset Managers
Thu, 08 Apr 2021 14:45:41 +0000

This short work will help readers appreciate the potential power of machine learning techniques.

Refreshing Revenue, the Cash Conversion Cycle, and Free Cash Flow
Mon, 05 Apr 2021 17:20:13 +0000

GAAP sometimes misrepresents business reality. We can use that fact to generate some alpha.

How to Manage Inflation Risk: The Local Inflation Factor
Tue, 30 Mar 2021 21:11:45 +0000

Amid increasing inflation fears, how can investors measure and protect against the inflation risk in their portfolios?

COVID-19 and 17 May: Tax Day Considerations for Clients
Mon, 29 Mar 2021 04:00:16 +0000

Have you spoken to your clients about how pandemic-imposed working-from-home arrangements may affect their tax liabilities?

Trading at All Hours: The Portfolio Implications
Fri, 26 Mar 2021 04:00:57 +0000

All the day trading by the new class of retail investors has not helped the long-only crowd.

Capitalism Is Dead, Long Live Debtism
Wed, 24 Mar 2021 18:51:20 +0000

Should a loan that one neither intends nor is required to repay be considered debt or equity?

Myth-Busting: Earnings Don’t Matter Much for Stock Returns
Mon, 22 Mar 2021 04:00:39 +0000

The relationship between earnings and equity returns is more illusion than reality.

Book Review: Fed Watching for Fun and Profit
Thu, 18 Mar 2021 22:40:40 +0000

Edward Yardeni's Fed Watching for Fun & Profit is a crash course in monetary policy actions, financial markets, and the economy in general.

Corporate Sustainability: Three Reasons Why It’s Even Better Than You Think
Wed, 17 Mar 2021 12:10:54 +0000

"Good values go hand in hand with good business."

Moats or Market Power?
Mon, 15 Mar 2021 18:25:43 +0000

Instead of searching for firms with moats, we should be looking for those with market power.

Fraud and Deception Detection: Five Language Fingerprints
Thu, 11 Mar 2021 17:10:26 +0000

Dishonest companies tend to leave five textual fingerprints in their communications that differ from those of more truthful firms.

Five Investing Success Stories from Five International Women
Mon, 08 Mar 2021 11:00:39 +0000

In honor of International Women's Day 2021, Barbara Stewart, CFA, shares the stories of five women investors.

A Call to Action: Aligning Gender Lens Investing and ESG
Sun, 07 Mar 2021 17:25:47 +0000

Gender lens investing (GLI) is a thematic environmental, social, and governance (ESG) strategy.

How Alpha Hides in GAAP Accounting: Return on Equity
Fri, 05 Mar 2021 15:10:45 +0000

You can find significant alpha in the mechanics that drive GAAP accounting.

Book Review: Too Smart for Our Own Good
Thu, 04 Mar 2021 05:00:26 +0000

Too Smart for Our Own Good’s core thesis should be taken to heart not only by investment professionals but by all investors.

How Long Does Competitive Advantage Last? A Sector Analysis
Mon, 01 Mar 2021 05:00:10 +0000

Does a firm’s competitive advantage tend to endure longer in some sectors than others?

Aswath Damodaran on the COVID Crucible: A Play in Three Acts
Sat, 27 Feb 2021 02:56:27 +0000

"In most crises, young companies suffer at the expense of old companies, risk-on companies get hurt more than risk-off companies," Aswath Damodaran said. "This crisis seems to have flipped the script."

ESG Matters: Global Trends and Transitions
Thu, 25 Feb 2021 05:00:07 +0000

How are women growing in importance in the investment ecosystem? How are firms approaching the sustainability journey?

Beyond Intention: Diversity, Equity, and Inclusion Require Action
Tue, 23 Feb 2021 20:57:00 +0000

How did PNC integrate diversity, equity, and inclusion (DEI) factors into its practices?

Impact-Weighted Accounting: The Missing Ingredient?
Thu, 18 Feb 2021 05:00:02 +0000

Can Impact-Weighted Accounting (IWA) help unlock ESG Alpha for investors?

Bernoulli’s Prisoner’s Dilemma: A Goals-Based Perspective
Wed, 17 Feb 2021 05:00:17 +0000

Can goals-based portfolio theory bridge normative and descriptive investment theories?

Fraud and Deception Detection: Text-Based Analysis
Mon, 15 Feb 2021 05:00:43 +0000

Technology can give investment pros a huge advantage in evaluating the truthfulness of company communications.

The Price of Nature
Wed, 10 Feb 2021 14:44:18 +0000

To avoid a tragedy of the commons, we need to develop a formal method to price nature assets.

On-Demand Pay: Is It Here to Stay?
Mon, 08 Feb 2021 05:00:07 +0000

The pandemic has spurred the development of Employer Salary Advance Schemes (ESAS), or on-demand pay.

Jon Stein, CFA, on GameStop and the Market’s Trust Crisis
Sun, 07 Feb 2021 05:00:22 +0000

Betterment founder Jon Stein, CFA, shares his perspective on the GameStop fiasco.

Beware the Bubble? The US Stock Market Cap-to-GDP Ratio
Tue, 02 Feb 2021 15:52:02 +0000

The Buffett Indicator is flashing red and has been for a while now.

Myth-Busting: Low Rates Don’t Justify High Valuations
Mon, 01 Feb 2021 05:00:37 +0000

Lower interest rates may not, in fact, lead to higher P/E ratios.

GameStop or: Why the Short Sellers Win
Sun, 31 Jan 2021 19:25:07 +0000

The GameStop short sellers might have left the market. But don’t for a minute think they are licking their wounds in defeat.

The Buffett Indicator Revisited: Market Cap-to-GDP and Valuations
Fri, 29 Jan 2021 15:25:51 +0000

How useful is the Buffett Indicator really?