Top 10 Posts from 2016: How to Read Financial News, Active Investing
1. How to Read Financial News: Tips from Portfolio Managers
Reading obscure financial information may look and feel like productive work, but most of this content has little chance of leading to better results, says Robert J. Martorana, CFA. So portfolio managers must learn to read fast and quickly detect nonsense.
2. James Grant: Negative Interest Rates Will End — Badly
“Radical monetary policy begets more radical policy,” says James Grant. “It seems to me at some point markets or voters will put a stop to this.” Matthew Borin takes a closer look at this and other revelations from Grant’s remarks on the ramifications of unprecedented loose monetary policy at the New York Society of Security Analysts (NYSSA) Annual Benjamin Graham Conference in 2016.
3. Effects of Elections: Predicting the Market’s Response to Clinton or Trump
There was a great deal of uncertainty about the outcome of the 2016 US presidential election and what it would mean for the United States and the country’s standing on the world stage. There is likewise considerable uncertainty as to the effect US elections have on stock prices, judging by the voluminous and often contradictory research on the topic. Lauren Foster examines the data.
4. Active vs. Passive Investing and the “Suckers at the Poker Table” Fallacy
Druce Vertes, CFA, conducts a simple thought experiment: What would happen if everyone was a passive investor except Warren Buffett?
5. Five Reasons to Start Your Own Firm and Four Steps to Take to Do It
Today, a confluence of factors reinforces the opportunity to launch a financial advisory firm. Sameer S. Somal, CFA, explains five of them and has some advice on constructing the framework for getting your firm off the ground.
6. 34 Charts: This Time Is Different
Growth will come, but be realistic, Will Ortel advises. It might take a while.
7. Is Active Management Dead? Not Even Close
Rumors of active management’s demise are greatly exaggerated, AthenaInvest’s C. Thomas Howard tells Jason Voss, CFA, and he believes he has the evidence to make his case and the tools to help change active management for the better.
8. Sergio Marchionne Has Seen the Auto Industry’s Future: He’s Not Interested
Fiat Chrysler CEO Sergio Marchionne is making a one-way bet on cheap gas. This strategy has earned a fair degree of ridicule, but Marchionne may be onto something, says Sviatoslav Rosov, PhD, CFA.
9. Aswath Damodaran on How to Invest Internationally
Aswath Damodaran believes investors make two common valuation errors when it comes to country risk exposure: They focus on countries instead of companies and obsess over past mistakes. Matthew Borin describes these and other insights from a Take 15 interview with Damodaran.
10. A Valuation Method for Private Equity
A new firm offers up a unique valuation methodology for private equity. In this interview with Jason Voss, CFA, Sheridan Porter, cofounder of FEV Analytics, reveals some of the secrets to how they overcome traditional problems in order to value private companies.
If you liked this post, don’t forget to subscribe to the Enterprising Investor.
All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.
Image credit: CFA Institute
