Navigating tax strategies can be particularly tricky to begin with, and the flurry of advice following the IRS’s relaxation of Roth IRA recharacterization rules (which removed the restrictions on higher-income individuals converting their IRAs) caused no small amount of confusion in the financial community.
Is gold an really an inflation hedge? Is it a safe haven in times of stress? Cam Harvey has investigated some of the common arguments made in favor of gold.
“I’ve always been fascinated by and somewhat skeptical of the connection between economic growth and security returns,” William J. Bernstein says. “When you look at the broad sweep of history, it seems that both the equity risk premium and the risk-free rate have been decreasing over the past couple of centuries.”
What can investment managers learn from military strategists? According to Charles D. Ellis, CFA, quite a lot. “I think all of us who are involved in investment management would be very, very smart to be sure that we — and everyone in our organizations — are trying to find new ways of thinking,” Ellis says.
In the first five days of October 2008, large corporate pension funds lost more than $100 billion of pension assets. And at the end of 2011, the aggregate funding shortfall for Fortune 1000 companies amounted to $343 billion. In examining the decisions that defined benefit plan sponsors made, Xuanjuan Chen, Tong Yu, and Ting Zhang argue that moral hazard and tax benefits play a significant role.
Previous research has shown that the average actively managed mutual fund underperforms a low-cost index fund after accounting for fees and expenses, but a new paper quantifies the size of active positions and distinguishes between different types of active managers.
A team of researchers set out to disprove the old adage "sell in May and go away" — and were stunned to discover that the data backed it up.
The recent financial crisis saw a large-scale flight to quality, but Paul Pfleiderer’s recent research suggests that the optimal investor response in a crisis involves a surprisingly limited amount of portfolio turnover.
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