Equity Risk Premium Forum: Gloom Looms?
For more insights on the equity risk premium (ERP) from Rob Arnott, Cliff Asness, Mary Ida Compton, Elroy Dimson, William N. Goetzmann, Roger G. Ibbotson, Antti Ilmanen, Martin Leibowitz, Rajnish…
Machine Learning Algorithms and Training Methods: A Decision-Making Flowchart
Machine learning is set to transform investment management. Yet many investment professionals are still building their understanding of how machine learning works and how to apply it. With that in…
Outperformance Ain’t Alpha | CFA Institute Enterprising Investor
Introduction Around 90% of US drivers rate themselves as safer and more skillful than average. Obviously, such perceptions do not reflect reality. After all, 9 out of 10 people can’t…
The Eye of the Storm: The Fed, Inflation, and the Ides of October
The eye of a hurricane is a deceivingly perilous place. Those lucky enough to enter it unscathed may enjoy a well-deserved respite, but the blue skies and calm winds also…
Fundamental Value Revisited? Three Investing Tips for “Absolutely Crazy” Conditions
“We all know the importance of fundamentals and fundamental value,” Brian Singer, CFA, said at the Alpha Summit GLOBAL by CFA Institute this past May. “ what do we do…
COVID-19 Correlations: Local Cases, Local Returns?
That local mood affects local stock returns is a longstanding truism of the financial markets. Numerous behavioral studies back this up. When a sports teams loses, for example, the stocks…
Book Review: The Future of Money
The Future of Money: How the Digital Revolution Is Transforming Currencies and Finance. 2021. Eswar S. Prasad. The Belknap Press of Harvard University Press. Today, you can’t turn on the…
Pensions, Crypto, and Trust: Digital Assets and Retirement Funds
Retirement planning is the primary objective of retail investors. Indeed, 47% of respondents in the 2022 CFA Institute Investor Trust Study indicated saving for retirement was their most important investment…
“Round-Tripping” Stocks and the Absurdity of Hedge Fund Fees
Hedge fund performance fees, I believe, are a rip-off for clients. Few phenomena illustrate this better than “round-tripping” stocks. These are stocks that, over the course of several years, for…
Book Review: Convertible Securities – CFA Institute Enterprising Investor
Convertible Securities: A Complete Guide to Investment and Corporate Financing Strategies. 2022. Tracy V. Maitland, F. Barry Nelson, CFA, and Daniel G. Partlow. McGraw Hill. Professionals who contemplate investing in,…
