Practical analysis for investment professionals
13 June 2014

Weekend Reads for Investors: Buffett’s Brain, Bubbles, and Uber

Posted In: Weekend Reads

As we look to close out the first half of 2014, global equity markets are near all-time highs and continue to meet little resistance. And what’s not to like? Investor sentiment is overwhelmingly bullish, economic news, on the margin, has been positive, and central banks continue to prime the liquidity pump. Companies, meanwhile, are awash in cash and eager to reward shareholders with stock buybacks.

The geopolitical backdrop may be less than encouraging, with turmoil and escalating conflicts around the world, but markets have been largely indifferent. The complacency among investors is hard to miss and perhaps best reflected in the United States by the CBOE SPX Volatility Index (VIX), which recently dropped to a 7-year low. The VIX historically moves in the opposite direction of equities, and while investors may be inclined to see the current lack of volatility as an all-clear signal, contrarians should instead consider the depressed levels of Wall Street’s so-called “fear gauge” as a warning sign. BlackRock’s Russ Koesterich puts it best, noting, “Low volatility has a way of persisting, until it doesn’t.”

Below are some other stories and videos that caught my eye in recent weeks.

Strategic Thinking

Valuation

Technology and Innovation

Wall Street


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.

Photo credit: ©iStockphoto.com/temmuzcan

About the Author(s)
David Larrabee, CFA

David Larrabee, CFA, was director of member and corporate products at CFA Institute and served as the subject matter expert in portfolio management and equity investments. Previously, he spent two decades in the asset management industry as a portfolio manager and analyst. He holds a BA in economics from Colgate University and an MBA in finance from Fordham University. Topical Expertise: Equity Investments · Portfolio Management

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