Despite some current limitations, AI stands to offer significant advantages versus traditional approaches to identifying and predicting financial crises.
Category: United States
Why Your Portfolio Should Include Scarce Assets
Portfolios that include both productive and scarce assets can deliver similar performance to the S&P 500 with less risk than those that hold only productive assets.
Coiled Tight: Smaller Companies Are Primed for Outperformance
Small-cap companies are poised for a rebound. The sector is best approached through an active investment strategy where expertise and a deep understanding of the individual businesses and their risk-and-reward characteristics are necessary for success.
Investment Returns Are NOT Random
Are investment returns random across time as Burton Malkiel suggests in his book, A Random Walk Down Wall Street? There is notable disagreement on this topic. This research finds that practitioners may need to rethink their portfolio optimization routines.
Generational Wealth: Does the Apple Fall Far From the Tree?
There is strong evidence that most “rich families” will be poorer after several generations. Some of the reasons for this are systemic like taxes. But most factors that diminish a family’s wealth over generations are the choices that heirs make.
State Capitalism in Private Markets: Mission Creep
Governments relish mingling in markets. Yet, if past policies are any guide, taxpayers are being shortchanged.
Implementation Shortfalls Hamstring Factor Strategies
Smart rebalancing rules help portfolio managers capture more of the return that is inherent in their factor strategies. Concentrating on “priority best” trading improves factor portfolio performance.
IFRS Accounting Standard Will Support Better Investment Decisions
IFRS 18 responds to investors’ concerns about challenges in comparing companies’ financial performance.
Meir Statman: Your State of Mind Influences Your Investing Success
Meir Statman shares his insights on the broader aspects of financial well-being and its interconnection with life satisfaction.
Book Review: Trailblazers, Heroes, and Crooks
Stephen Foerster, CFA, extracts lessons from exceptional episodes in financial history that ordinary investors and seasoned professionals alike can put to profitable use. The bonus is that you’ll be entertained from start to finish.