Top Five Articles from May: Helicopter Money and the Earnings Avalanche
Warren Buffett and Protégé Partners entered into a 10-year bet on whether an index fund would outperform a portfolio of hedge funds. With two years remaining, Buffett leads by a wide margin. So what does that mean for the active vs. passive debate? Larry Cao, CFA, explores the question.
Based on the glut of recent earnings calls, Scott Krisiloff, CFA, observes a consensus view on the economy emerging from the C-suite: Things are sluggish and people are still cautious, but there’s no reason to believe that a downturn is imminent.
What’s the cause of the current global economic malaise? Lord Adair Turner believes it all comes down to debt. His proposed solution? Helicopter money, or what he prefers to call “overt monetary finance of increased fiscal expenditure.”
Acquiring and serving clients requires specific skills. When launching your own business, you will need to foster trust with prospective clients and strategic referral partners. In order to help clients implement investment or financial planning advice, you will need to build even more trust, says Sameer S. Somal, CFA.
Imagine for a moment an investment world without the accomplishments of the late Jack L. Treynor. In this imaginary Treynor-less world, mass casino psychology and fund manager guru-worship might rule, unchallenged by any metrics other than crude popularity and marketing spend. Mark Harrison, CFA, considers the implications and Treynor’s impressive legacy.
If you liked this post, don’t forget to subscribe to the Enterprising Investor.
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.
Image credit: © iStockphoto.com/fotoVoyager