31 May 2016

Top Five Articles from May: Helicopter Money and the Earnings Avalanche

Posted In: Best Of

1. Does the Buffett Bet Signal the End of Active Management?

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.

2. The C-Suite Speaks: Earnings Avalanche

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.

3. Helicopter Money: An Idea Whose Time Has Come?

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.”

4. The Intangibles of Having Your Own Firm

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.

5. Jack L. Treynor and the Birth of the Quants

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.

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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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About the Author(s)

Paul McCaffrey

Paul McCaffrey was formerly the editor of Enterprising Investor at CFA Institute. Prior to that role, he served as an editor at the H.W. Wilson Company. His writing has appeared in Financial Planning and On Wall Street, among other publications. He is a graduate of Vassar College and the Craig Newmark Graduate School of Journalism at CUNY.