Equity risk premium appears intact
The equity risk premium will reflect long-term averages, based in part on a Financial Analysts Journal article that shows buybacks are now top drivers of equity returns, replacing dividends.
Equity risk premium appears intact
The equity risk premium will reflect long-term averages, based in part on a Financial Analysts Journal article that shows buybacks are now top drivers of equity returns, replacing dividends.
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What’s the impact of the stock:bond correlation?
The correlation between stocks and bonds in a rising interest rate environment can turn positive. So given the likelihood of a rate rise, what should asset allocation look like if investors are forward looking? One of the growing trends in asset and risk allocations is to adopt a forward-looking view driven by macroeconomics, rather
The arithmetic of “all-in” investment expenses
In the January/February issue of the Financial Analysts Journal, Jack Bogle, founder and former chief executive of the Vanguard Group, looks at the “all-in” investment expenses including not only expense ratios byt transaction costs, sales loads and cash drag. He highlights, in particular, how damaging these costs can be over the long run, and reaffirms
Investor behaviour erodes performance
Performance is eroded by institutional investors’ decisions around hiring and firing managers according to the preliminary results of a behavioural study by Boston University that links qualitative factors such as committee characteristics with earlier empirical research on performance.
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