Economics

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Weekend Reads for Investors: Volatility and the “Yellen Put”

Investors: Volatility and the "Yellen Put"

Up until last week’s wild ride for stocks, volatility had been largely absent from the market, but the cumulative effect of ongoing geopolitical chaos, spreading Ebola anxiety, and uninspiring economic data, combined with the rumored unwinding of some leveraged positions by hedge funds, at least temporarily jolted global equity markets. Complacency was quickly replaced with panic and we got a reminder of what happens when everyone heads for the exit at the same time. Read more

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Shareholder Value Maximization: The World’s Dumbest Idea?

Shareholder Value Maximization: The World Dumbest Idea?

Jame Montier made his case against shareholder value maximization during his closing keynote address at the 2014 European Investment Conference in London. In his characteristic iconoclastic style with a generous use of ironic humor, Montier labeled shareholder value maximization the way Jack Welch, the former CEO of GE, had once described it in 2009, as “the dumbest idea in the world.” Read more

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