Making investment decisions today is incredibly diffcult. With interest rates at historic lows, and the Fed about to unwind quantitative easing, bonds carry a lot of risk for little reward. At the same time, stocks look fully valued (or overvalued) by nearly every traditional measure… and if the Fed does tighten, history indicates big problems ahead for equities.
“Three Moves Ahead” shows how classic chess strategies address the #1 problem of Information Age executives: how to move quickly in the face of incalculable complexities and unexpected change. This witty and novel guide, written for non-players, is packed with scores of real-world examples showing how top CEOs use Grandmaster techniques to win on Wall Street.
QT is a fundamental shift in the macro-economic framework, and comes at a time when almost all government and corporate debt levels are at historic highs. It demands re-evaluation of portfolio construction precisely because it is not, and cannot, be accounted for by standard investment formulas and models. Full article PDF
Stephen L. Kessler Award
The research is clear: private equity typically generates better returns than the public markets. Full article PDF
Stephen L. Kessler Award “Modern” Portfolio Theory doesn’t account for central bank actions, geopolitical surprises, extreme duration risk… or many other factors affecting today’s markets. Here’s what to do about it. Full article PDF
“Wall Street Turns to ETFs to Sidestep Illiquidity in Bond Market” ran a recent Bloomberg headline. Because the ability to trade individual bonds is degrading, the story reported, investors are piling record dollars into global bond ETFs. So Wall Street, in its wonderful way, has invented a…Full article
For several years of steadily rising prices across all asset categories, investing was like bowling with gutter guards: Everyone showed solid scores in every frame. Monotonous gains pushed measured volatility to historic lows. But Full article
