Practical analysis for investment professionals

Equity Investments


Cochrane and Coleman: The Fiscal Theory of the Price Level and Inflation Episodes

John H. Cochrane and Thomas S. Coleman discuss how the fiscal theory of the price level explains inflation.

The Equity Advantage: Reinvestment of Earnings

Equities can compound in value in a way that investments in bonds, real estate, and other asset classes cannot.

How Sharp Is the Sharpe Ratio? An Analysis of Global Stock Indices

To test the Sharpe Ratio’s effectiveness, we constructed monthly return distributions for global stock market indices to see if any had too much skewness.

Renewable Energy Funds: Through a Gender Lens

As ESG investing continues to grow, applying a gender lens to public equity funds focused on climate solutions is critical.

Tell Me a Story: Aswath Damodaran on Valuing Young Companies

When valuing companies, "You don't have to be right to make money," Aswath Damodaran says. "You just have to be less wrong than everybody else.”

Building a CAPM That Works: What It Means for Today’s Markets

The capital asset pricing model (CAPM) is a marvel of economic scholarship. The problem is that it doesn’t always work in practice. So, we fixed it.

Book Review: Asset Allocation

William Kinlaw, Mark Kritzman, and David Turkington offer advice on a wide range of asset allocation topics, backing up their recommendations with solid quantitative analysis.

Lessons in Behavioral Bias: The COVID-19 Equity Markets

The pandemic-era stock markets have been a showcase of behavioral biases in action.

Why Invest in Stocks?

Equities are not necessarily more risky than such "safe" assets as US Treasuries. 

Equity Risk Premium Forum: The Deficient Market Hypothesis

"If we thought of the equity premium as a fear premium," Rob Arnott says, "a lot of the so-called anomalies that we’ve talked about would not be anomalies at all."