Top Five Articles from November: (Un)Passive Management, the TPP, and Inflation
Passive investing is not actually passive. When looked at this way, it means there are important lessons for active investors. Examples include the hidden story behind market capitalization and the importance of low turnover. This also opens passive investing up to criticism regarding the free passes given to it in terms of risk, cost, and momentum.
Is it time to put conversations about inflation risk on the back burner? Questions like this illustrate a major flaw in the way many investors approach protecting their portfolios against inflation risk: Discussion starts only after rising inflation is already a problem and inflation hedges are expensive.
Ronald G. Layard-Liesching outlined a startling and complex thesis at the recent 2015 CFA Institute Fixed-Income Management Conference in Boston. Could currency market structure, quantitative easing (QE), and other factors cause a flash crash?
Research confirms a “wisdom of the crowds” effect insofar as only a few analysts seem able to consistently outperform the consensus forecast compiled from many different analysts, says Joachim Klement, CFA.
The 12 Trans-Pacific Partnership (TPP) member countries jointly produce 40% of global GDP and represent about 800 million consumers. How will the agreement affect your business? What will be the impact on the companies you invest in? Larry Cao, CFA, put together a primer to help you develop a framework for analysis and zoom in on some of the key issues.
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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.
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