For years, researchers have used historical returns as proxies for estimating equity risk premium. This approach is problematic, however, because the resulting estimates don't vary from one year to the next, even though equity market returns can be wildly divergent from year to year. Katsunari Yamaguchi, CFA, has developed a new method for estimating equity premiums.
Ng Kok Song, former group chief investment officer of the Government of Singapore Investment Corporation (GIC), and Jason Voss, CFA, discuss an increasingly meaningful tool in the investment toolkit: meditation.
Nate Silver, author of The Signal and the Noise and founder and editor-in-chief of FiveThirtyEight, explains how to differentiate between “signal” and “noise,” and discusses the danger of false signals, in a recent Take 15 interview with Lauren Foster.