A great crisis can produce great leaps forward in thought and human achievement. So is there any evidence that the epic financial crisis of 2008 will leave a legacy of fruitful ideas for our financial system? Read more
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Benjamin Graham, the father of security analysis, once said, “The essence of investment management entails the management of risk, not the management of returns.” This is advice that every investment trustee should take to heart. Read more
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While all investors are concerned with the risk and return of investing, some are also concerned with social and environmental impact of their investments. Céline Louche discusses the dilemmas these investors face. Read more
Leave a CommentSpeaking live from the Fifth Annual European Investment Conference, Nobel laureate Robert C. Merton discusses using modern financial tools, such as contingent claims analysis (CCA), to better understand how macrofinancial risks transfer through markets to affect various asset classes, currencies, and investment strategies. Read more
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Here are my picks for some of the most interesting recent articles and blog posts, in case you missed them. Behavioral Science and Risk Prospect theory and football? This piece is not exactly about finance, but it’s nonetheless interesting from … Read more
Leave a CommentThe advent of a new round of quantitative easing has significant impact for investors, but it’s important to understand what’s actually happening. Last week the Fed extended its “low rates” language from 2014 to 2015, announced it would be … Read more
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Are you more like a stock or a bond? Chances are this question has never occurred to you. But it’s one you’ll need to answer when you use the concept of human capital to diversify and build your wealth. Wealth … Read more
Leave a CommentIn an article from the upcoming issue of the Financial Analysts Journal, Mohamed A. El-Erian and Michael Spence use an array of real-life examples — including the current sovereign debt crisis in the eurozone — to analyze the underlying dynamics of the periodic bouts of systemic path dependence that affect not only financial markets but also investment strategy itself. Read more
Leave a CommentIn a poll conducted earlier this week, CFA Institute asked its members if tighter regulation of high-frequency trading would meaningfully reduce technical glitches in the stock market. Not surprisingly, nearly two-thirds of respondents thought that tighter regulations would indeed be effective. Read more
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Amid all the buzz about athletes and the Olympics, two of the most interesting articles I came across recently were about marathon runners: one a champion, the other a cheat. Both offered insights into human psychology and what separates winners from losers. Read more
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