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.

Sponsored Content

Leave a Comment

Sort content by

Not drowning, waving: quants on the comeback trail

Quantitative investing has taken a battering during the global financial crisis, with many big firms suffering lower-than-average performance for much of the past two years. But the stuff that gave quants a compelling story before  investor behavioural biases – is now helping them again. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

What’s the role of an asset consultant post crisis?

Asset consultants have recently started offering medium-term asset allocation advice, often as a separately priced service. Watson Wyatt Worldwide calls it “dynamic strategic asset allocation”. Russell Investments calls it “enhanced asset allocation”. Whatever the term, the advice sits between tactical asset allocation at the short end and strategic asset allocation at the long. mrec4inarticleinline Sponsored

QIA buys agribusiness, but not land, to feed Qatar

A food company owned by the $65 billion Qatar Investment Authority (QIA) has launched a joint venture in Sudan as part of its strategy to generate profit and secure food supply by investing in overseas agricultural businesses. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

What the world needs now: greater surveillance on exchange rates

The world needs to move back to a rules-based system of oversight over currencies and enhanced global surveillance of national macroeconomic policies, according to a leading Professor of Economics at the University of Oxford, UK. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

ING the latest to hive off funds management

Another big bank is set to hive off its funds management business to shore up its balance sheet, with this week’s announcement of the proposed divestments by ING Group. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3

China’s CIC goes public with investment strategy

China Investment Corporation has for the first time revealed its investment strategy. SONIA HAN reports that the Chinese sovereign wealth fund has accelerated its investment program in open-market products and industries such as mining, energy and real estate. The CIC is seeing value after the crisis but is also looking to limit portfolio risk. mrec4inarticleinline

Previous