You would think that growth in a country’s money supply and labor force would lead to economic expansion, but does it always? We took a look over the last two economic cycles to see. Read more
Leave a CommentPortfolio Management
560 Posts
Few investors with a public record can stay intensely focused on all three parts of the investment game: recency, avoiding mistakes, and anticipation. However, keen observation of the everyday can help. Read more
Leave a Comment
The economic backdrop figures prominently in the chatter among investment strategists of late as they debate the sustainability of the “decoupling” of the US economy from sluggishness in the rest of the world. Bank of America Merrill Lynch strategists have called the decoupling trade — long US stocks and the dollar — “the most crowded trade in the world.” As US stocks hover near all-time highs, those with a contrarian bent may be receptive to the latest missive from Joe Calhoun. In “Is It Time to Zig?” he suggests investors might want to look outside of the United States for opportunities. Read more
Leave a CommentSocial media can be a tool for gauging the perceptions of others, be it the market’s receptivity to a company’s product or the feelings investors have about a particular stock or bond. Read more
2 Comments
The poor performance of active management has been well chronicled of late but the active fund management industry is not going down without a fight. Apologists have been quick to point to artificially low interest rates as one factor dragging down the collective returns of stock pickers. Index huggers — those managers with low tracking error funds and almost no hope of outperforming their benchmark after fees — are also to blame. In response, active managers are pointing to their “active share” — a measure of how much a portfolio’s holdings differ from those of its benchmark — and research that suggests funds with the highest active share do indeed beat their benchmarks. A review of just-filed quarterly 13F reports reveals that some of the most prominent fund managers truly embrace their role as active portfolio managers. Read more
6 Comments
Since 1975, when the first Islamic commercial bank was established in Dubai, Islamic finance has come a long way. Its global assets are now estimated to be around US $1.5 trillion across the banking sector, capital markets, and takaful, or Islamic insurance. Given the available track record, how do informed observers characterize the development of this most prominent form of faith-based finance? Read more
14 Comments
Curiosity is one of the critical skills leading to investment management success. Read more
12 Comments
For astute investors who are always asking “is the price right?” we serve up some food for thought this weekend. Read more
2 CommentsRetirement income typically comes from three sources: government programs, employer-supported pensions, and individuals’ savings. Because each component is involved in providing retirement benefits, we asked CFA Institute Financial NewsBrief readers who should bear the primary responsibility for a well-funded retirement. Read more
Leave a Comment
Standing seven years into a 10-year wager with Warren Buffett that hedge funds would outperform the S&P 500, we sure look wrong. What follows is an assessment of why, and an outlook on where to go from here. Read more
13 Comments