Top Five Articles from November: The Fiscal Cliff, Another Lost Decade for Stocks, OTC Derivatives

Categories: Derivatives, Economics, Equity Investments, Portfolio Management, Risk Management, Standards, Ethics & Regulations (SER)
Capitol Building

1. The US Fiscal Cliff: Assessing the Impact

If Congress maintains the current tax and spending policies, we will get more of the same economy we have experienced for the past three years (all else being equal). But what if Congress lets the fiscal cliff hit? Ron Rimkus, CFA, assesses the impact.

2. Asness: Shiller P/E is Signaling Risk of Another Lost Decade for US Stocks

With the Shiller P/E for the S&P 500 currently standing at a 21.5 (approximately 30% higher than its long-term average), many value investors, including Cliff Asness of AQR Capital Management, have adopted a cautious stance toward US stocks.

3. Dodd-Frank Extraterritoriality: OTC Derivatives Reform in Asia, Europe, and Beyond

Dodd-Frank includes provisions that could extend its reach extraterritorially to Asia, Europe, and beyond. Participants in the OTC derivatives market in these regions are assessing the potential cross-border compliance obligations.

4. Book Review: The Value Investors

This examination of the strategies of 12 outstanding investors from around the world provides a valuable contribution to the literature on global value styles. Well researched and well written, in addition to being an enjoyable read, this book is a must for anyone even remotely interested in investment management styles.

5. Current Thinking on the Financial Crisis and the Way Forward

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?


Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

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