Enterprising Investor
Practical analysis for investment professionals

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25 Posts

Author's Posts
The Yield Curve, Recessions, and Monetary Policy Blunders: EI Podcast Highlights

We are three months away from the longest yield curve inversion-to-recession period. Will Cam Harvey's famous recession indicator hold? Highlights from EI podcast.

Meir Statman: Your State of Mind Influences Your Investing Success

Meir Statman shares his insights on the broader aspects of financial well-being and its interconnection with life satisfaction.

Mindy Lubber: A Sustainability Story

Climate risk is financial risk, according to Mindy Lubber.

Women in Finance Need to Be Proactive

“Our industry lags most others in terms of attracting, retaining, and advancing women, and that’s a problem for all of us,” says the president and CEO of Charles Schwab Investment Management.

The Role of Institutional Investors in Curbing Corporate Short-Termism

Institutional investors are the majority owners of most publicly traded companies but allow activist hedge funds with smaller positions to push through corporate changes. Robert Pozen argues that institutional investors should actively participate to ensure that the outcome promotes long-term growth instead of temporary price spurts.

Book Review: Asset Rotation

Although the author’s argument heralding the demise of modern portfolio theory (MPT) seems weak, he offers a compelling argument for active management. Using exchange-traded funds (ETFs) and asset rotation, he demonstrates how to achieve a return superior to that of a passively managed fund that relies on MPT and index funds. Asset Rotation may well be a harbinger of an “investment renaissance” and the end of passive management.

David Swensen on the Fossil Fuel Divestment Debate

Many educational endowments and other investment organizations are struggling with the question of whether to comply with the widespread demands of students and other constituencies to divest their fossil fuel stocks. Some have announced decisions to divest, whereas others have announced decisions not to divest.

Why We Need to Change the Conversation about Pension Reform

The sustainability of traditional public sector defined benefit (DB) plans has become front-page news and the subject of acrimonious debates usually framed in stark terms of DB versus DC (defined contribution). This either/or framing is unhelpful: It simply perpetuates the strongly held views of the defenders and critics of these two opposing pension models.

Systemic Risk and the Investment Professional

Is the money management profession a source of systemic risk? Do the investment flows that we intermediate contribute to financial fragility? Might asset management firms, like banks, be “too big to fail”? Robert Jenkins, FSIP, a member of the Board of Governors of CFA Institute and a senior fellow at Better Markets, urges investment professionals to stand up and speak out.