Intelligence is what helped humans thrive over time and through adversity. It’s what distinguishes us from the rest of the living creatures on the planet. But while this may be so in general, I’m not sure it’s true in every field.
A couple of months ago this article appeared in The New York Times.
Exponential versus linear: why bother? See this wonderful BBC article, Exponential growth bias: The numerical error behind Covid-19.
Because, at the end of the day, it’s not just the size of returns and profits that matter but also who owns them.
The pricing of some financial strategies continues to remain obscure and extremely difficult to ascertain, despite regulators’ substantial efforts to improve transparency.
A real new normal: this article in The Guardian gives you lots to think about.
Proliferating asset classes can be the product of clever marketing more than of fundamental differences.
Recently a client asked me why alternative investments are often considered a different asset class. It’s something I have often asked myself.
An interesting paper on the origins of the recent economic trauma.
I’m not a fan, but Krugman here hits the nail on the head.
When policies kill an asset class – and more – in the process
If holding safe assets – whether money-market balances or high-grade bonds – is starting to feel like brain surgery without anesthesia, well that’s because it is. Blame it on the Fed and global central banks. In the US, cash rates are 0% and for some time now the entire Treasury inflation-linked curve is yielding below that as well. To be clear: all US TIPS are priced to make you lose money, after inflation.
In this paper, different ‘asset class,’ different players (maybe), same results, with an added twist: fee alignment is purely theoretical.