Economists and investors need to define what they truly know and, more importantly, what they don’t know. Standish Chairman Emeritus Ted Ladd believes that such an exercise should include debunking myths that are repeated so often they become a kind of conventional wisdom that casts more heat than light on the pressing questions of the time. Ted presents his candidates for the most egregious myths of our time in his recent Viewpoint.
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My Nominations for the Most Egregious Economic and Financial Myths of Our Time
China’s Changing Workforce Creates Problems and Opportunities
As China’s workforce becomes more educated and more affluent, the country is evolving from the world’s manufacturing assembly line into one of the most promising consumer markets. Hamon Investment Group believes all of this is having an important effect on where the new growth and investment opportunities are developing.
China’s Changing Workforce Creates Problems and Opportunities (PDF)
The Quest for Beta: Balancing Risks with Costs and Returns
As more institutional investors seek to diversify their beta exposures, Mellon Beta Management analyzes the cost/benefit trade-offs of replicating and managing those exposures with a variety of instruments in different markets.
The Merits of Active Investment Management
The global financial crisis has reignited the debate over the merits of active versus passive management in light of the failure of some active strategies to meet investor requirements during the crisis. Newton Investment Management argues that there is a strong case for most investors to use a proven active approach, especially during periods of volatility like the current one, where asset valuations are widely dispersed.
Link to the research paper: Active Investement Management Report
Investing in Debt: Opportunities in Leveraged Loans
Alcentra, a BNY Mellon Asset Management company focused on sub-investment grade debt capital markets in Europe and the U.S., sets out why it believes the forthcoming vintage of leveraged loan origination is likely to provide more favorable returns for the lowest risk that has been seen in the market for some time.
A Guide to Global Real Estate Investment Options
Urdang, BNY Mellon Asset Management’s global real estate investment subsidiary, argues that global real estate as an asset class, despite recent turbulence in developed markets, continues to offer portfolio diversification, solid cash flows and a measure of inflation protection through index-linked rents, with a range of opportunities around the world.
Global Investing – A view from the top: go global in fixed income and currencies
The rationale for investing in global fixed-income securities used to be founded upon the existence of a weak local currency. There are now many more reasons to invest in overseas fixed-income markets. Diversifying away from a domestic market in which the central bank is running the risk of inflation and in which the government is not addressing debt challenges adequately seems a sensible idea. Investing in the bond markets of fiscally responsible countries in which inflation is poised to stay low gives investors a potentially attractive alternative.
Download the research paper here: Go global in fixed income and currencies