2013 Nobel Prize in economics split three ways

There is no way to predict whether the price of stocks and bonds will go up or down over the next few days or weeks. However, it is quite possible to foresee the broad course of the prices of these assets over longer time periods, such as the next three-to-five years.

These findings, which may seem both surprising and contradictory, were made and analysed by this year’s laureates, Eugene Fama, Lars Peter Hansen and Robert Shiller. Read the winning paper of the 2013 Nobel Prize in Economic Sciences, Trendspotting in asset markets.

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Dump cap-weighted indexing for ‘efficient beta’

The status quo of ‘passive’ equity investment, ranking companies by market capitalisation, is delivering lower returns for higher volatility than a beta strategy which blends a cap-weighted approach with two of its competitors – minimum variance and fundamental indexing. Michael Bailey spoke to Lazard Asset Management’s Asia Pacific chief, Rob Prugue, about a paper co-written

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