Toolkit
30 Posts
One of the most important and oft-discussed topics in asset management is benchmarking. Even though the daily turnover in global currency markets has reached over US$4.7 trillion1, investors need to be aware of some key issues when it comes to … Read more
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The fundamental aim of any portfolio construction methodology is to deliver optimal risk-adjusted performance. While “risk” can be defined in a number of ways, maximum drawdown is probably one of the clearest ways to measure an investor’s risk appetite and … Read more
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“One who sees inaction in action, and action in inaction, has understanding among men, disciplined in all he performs.” —Bhagavad-Gita, Chapter 4, Verse 18 As you may have noticed, financial markets have been uncertain of late. The conventional response is … Read more
3 CommentsDollar-cost averaging is a technique that many investors have used to build substantial long-term wealth. Often, it works by setting aside a fixed amount of money every month for investment into a mutual fund. Vahan Janjigian, one of the Authors … Read more
Leave a CommentMany investors have been using Modern Portfolio theory to maximize return in their portfolios while reducing risk, but they often either aren’t sure what that means or aren’t even aware of the thinking that is informing their portfolio construction. To … Read more
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“Cash is trash” goes the saying in the market these days. Cash in a bank account yields virtually nothing, and near-cash investment vehicles like money market funds and certificates of deposit offer the prospect of paltry returns. No wonder investors … Read more
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One of the dirty little secrets of finance is that publicly traded corporations maintain two different sets of “books,” or accounting ledgers. Before you get all riled up and start calling various attorney generals’ offices, understand that it is perfectly … Read more
5 CommentsWe were interested to hear the insights of someone who sits at the intersection of media and finance, so we called Taesik Yoon, CFA, the editor of Forbes Investor. Taesik has been at Forbes for more than 10 years and … Read more
Leave a CommentNo, not the golf kind; those are “divots.” “DIVUTS” is an mnemonic device that CFA Program candidates use to memorize the different things that can affect the price of options. It stands for: Dividends Interest rates Volatility Underlying stock price … Read more
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