Our Top 10 Posts from 2012: The European Sovereign Debt Crisis, Warren Buffet’s Alpha, and More

Categories: Alternative Investments, Behavioral Finance, Corporate Finance, Derivatives, Economics, Equity Investments, Financial Statement Analysis, Fixed Income, Portfolio Management, Private Wealth Management, Quantitative Methods, Risk Management, Standards, Ethics & Regulations (SER)
Best of 2012

1. European Sovereign Debt Crisis: Overview, Analysis, and Timeline of Major Events

We help you keep tabs on the rapidly unfolding events in Europe with the most-comprehensive timeline online.

2. Does the US Presidential Election Impact the Stock Market?

On November 6 stocks took a dive, and many commentators attributed it to President Obama’s reelection. But do elections and election cycles really affect the markets?

3. Chasing Warren Buffett’s Alpha

From 1976 to 2011, Warren Buffett delivered an average annual return of 19% in excess of the Treasury bill rate, versus a 6.1% excess return for the stock market. How does he do it?

4. The Japanese Debt Crisis

In this two-part series, Ron Rimkus, CFA, asked whether Japan’s mounting debt had passed the point of no return and when exactly it would cross the event horizon.

5. Why the Current Account Deficit Helps Explain the Economics of QE3

What will be the impact of QE3? A careful study of the long-running US current account deficit provides some answers.

6. JPMorgan Chase and the London Whale: Understanding the Hedge That Wasn’t

JPMorgan faced intense scrutiny and litigation following the announcement that one of the bank’s traders had lost the firm $2 billion. Read this breakdown of how the London Whale followed one bad bet with another.

7. Lie Detection 101 for Financial Analysts: How to Spot Manipulators and Actors

Much research has been conducted on the effectiveness of lie detection in criminal justice. How can those lessons be applied to the world of finance?

8. Understanding the Libor Scandal: Recommended Reading

We sorted through the sea of coverage to provide the must-reads.

9. Asset Allocation and Portfolio Management: Is the Industry Shifting to a New Paradigm?

In an era of low investment returns, the traditional approach to asset allocation and portfolio management is giving way to a new model that holds the promise of working better during periods of instability and crisis.

10. Gold Investing: What is the “Barbarous Relic” Really Worth?

John Maynard Keynes once famously called gold the “barbarous relic,” suggesting that its usefulness and, hence, it’s value, is antiquated. So the question really is, or should be, is gold useful today? If so, what is its value? And how much should you pay for it?

Honorable mentions: Watch out for the potential pitfalls of the discounted cash-flow (DCF) model; intentionally defective grantor trusts on the chopping block; and the uncertain future of quantitative investing.

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

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