Top Five Articles from January: Charts, Commodities, and Compound Interest
“Recession” is a word on everybody’s lips these days. Will Ortel drills down into 34 revealing charts for insight into the overall outlook for growth. His conclusion: Growth will come, but be realistic. It might take a while.
A new firm offers up a unique valuation methodology for private equity. In this interview with CFA Institute, Sheridan Porter, cofounder of FEV Analytics, reveals some of the secrets to how they overcome traditional problems in order to value private companies.
Today, a confluence of factors reinforces the opportunity to launch a financial advisory firm. Sameer S. Somal, CFA, enumerates five of them — as well as some advice on constructing the framework for getting your firm off the ground.
With short-term forecasts, random walks tend to outperform the accumulated wisdom of professional forecasters. That estimation uncertainty is not reduced for long-term forecasts either, because mean reversion cannot overcome the effects of compound interest. Luckily, there is a range of techniques, from simple to sophisticated, that can help long-term investors with this challenge, says Joachim Klement, CFA.
Commodities producers took another hit at the start of 2016, following a brutal 2015. Many commodity prices hit multi-year lows. Weakening demand from China is widely blamed for the declines, but the more important factor is the supply glut, says Janet Zhang.
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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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