Practical analysis for investment professionals
22 December 2014

Best of 2014: Creative Destruction or “The Market’s Messy Way of Delivering Progress”

Posted In: Best Of

To say that 2014 has been volatile doesn’t even begin to describe it. While this allusion to economist Joseph Schumpeter’s theory of creative destruction might sound a little extreme, I think it succinctly (and optimistically) sums up much of the volatility that has come to characterize global markets over the past year.

In the face of such uncertainty, it is our goal here at the Enterprising Investor to provide you with practical examinations of current issues in finance and investing. Below is a selection of analyses, advice, and, if nothing else, some simply interesting opinions that address the myriad changes markets have experienced this year.

Although in the wake of the 2008 financial crisis and the subsequent low-rate environment, investment managers hailed emerging markets for their growth potential, 2014 began to challenge these strategies:

Not only has emerging market instability disrupted markets, so has technology:

Of course, no analysis of 2014’s market volatility would be complete without a discussion of the Fed’s tapering and the end of quantitative easing (QE):

So in a time of much uncertainty, how have investment managers continued to find alpha?

Thank you for reading and Happy 2015!

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All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.

About the Author(s)
Hadley Chu

Hadley Chu is the Investor Education intern at CFA Institute. She is pursuing a Bachelor's degree in economics at Princeton University.

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