Joachim Klement, CFA, is a trustee of the CFA Institute Research Foundation and offers regular commentary at Klement on Investing. Previously, he was CIO at Wellershoff & Partners Ltd., and before that, head of the UBS Wealth Management Strategic Research team and head of equity strategy for UBS Wealth Management. Klement studied mathematics and physics at the Swiss Federal Institute of Technology (ETH), Zurich, Switzerland, and Madrid, Spain, and graduated with a master’s degree in mathematics. In addition, he holds a master’s degree in economics and finance.
In today's bull market, the bezzle, or "inventory of undiscovered embezzlements," isn't stocked with Ponzi schemes and the like. Rather it is built on the notion that risky assets have become practically risk-free.
The European Commission is looking to make technical changes next year to parts of the revised Markets in Financial Instruments Directive in response to persistent criticism from market participants. Financial Times (subscription required) (13 Nov.)
The New York Legislature could remove an obstacle to transition of derivatives cash contracts from Libor to another interest-rate benchmark, but the Federal Reserve-backed Alternative Reference Rates Committee expects election-year delays to prevent action in the near future. "It's unlikely we'll have certainty on this for quite some time," says Brian Grabenstein of Wells Fargo, which is an ARRC member bank. MLex (subscription required) (12 Nov.)
US consumer prices increased the most since March last month, sending the consumer price index up 0.4%, according to the Labor Department. Health care costs had the biggest increase in more than three years, and recreation costs climbed the most since 1996. Reuters (13 Nov.)
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