Monetary Policy
“Most people tell me that long-run equity valuation data is meaningless," says Russell Napier. "I think they’re wrong.”
"The thing about fixed income is avoiding the downside," says PGIM's Gregory Roberts. "We get penalized for losses and get very little for getting things right."
The introduction of the Skill Ratio by Daniel Blais, CFA; Brodie Gay's examination of how inflation is underreported; and an exploration by Ziad Abou Gergi, CFA, of the manager-selection process, are among the top posts from March.
Published estimates suggest inflation has been nonexistent despite extended, near-zero interest rates and a near doubling of the M2 private money supply since the recession.
What were the leading stories from Enterprising Investor in January?
Switzerland will vote on a measure to end fractional reserve banking in 2018. Known as the Vollgeld, or "Full Money," Initiative, this proposal could transform modern finance as we know it. Jason Voss, CFA, curates a helpful reading list.
In this important contribution to the literature, noted monetary macroeconomists argue that the global financial crisis of 2007–2008 was caused by a crash in money growth.
Leading posts from August include Preston McSwain's call for more honest and accurate fee disclosures and performance reporting; an examination of Sam Zell's take on the economy by Julie Hammond, CFA; tips on how to ace job interviews by Julia VanDeren; Will Ortel's exploration of what's in a hedge fund name; and an analysis of capital markets during times of war by Mark Armbruster, CFA.
The first question Sam Zell asks when someone offers up an investment opportunity is “Where’s the demand?"
In this reprint of a collection of lectures, the Nobel Prize–winning author expounds on regional and international regulation and monetary and fiscal policy, as well as a host of other economic topics. His insights predate but point toward the recent global financial crisis, and his guidance is timely and critical for a global economy still facing the fallout from the crisis.