If you’re like many investors, you believe the recent communication from the Fed was a game-changer. In last week’s post, …I discussed some of the implications that I believe are inherent in such a policy for banks, insurance companies, and
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Here are two articles to read on risk parity:
Pro: Pick Your Poison
Con: The Hidden Risks of Risk Parity Portfolios…
I’m on the “con” side of this argument, because I am a risk manager, and have traded a large
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Many investment ideas are promising so long as few do them. Yes, there is an opportunity, but it is limited. “Shh, don’t tell everyone about it.”
Thus, the concept of “risk parity.” Lever every asset class up until it has…
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The Volcker Rule, part of last year’s Dodd-Frank financial regulation law, which debars banks from participating in risky proprietary trading, has drawn stiff opposition from finance ministers from around the globe. A specific tenant of the rule that says that
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If someone were to ask me my opinion on Junk Bonds at present, fool that he would be to ask me because I know real experts elsewhere, I would say this: They are good for a speculative trade, but dumb…
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There is no doubt that a perceived and/or actual lack of quality collateral exists in the markets today. Let’s take a look at some of the evidence I see and what it could mean for the markets.
In some cases,…
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Yesterday, Reuters’ blogger Felix Salmon in a well-written if somewhat verbose essay, makes the argument that “Greece has the upper hand” in its ongoing negotiations with the ad hoc …and official group of creditors. It would be a great
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By Thomas
Why Denmark has a big debt burden AND low interest rates?
As reported on Bloomberg:
Denmark’s AAA to Survive World’s Biggest Private Debt Load, Fitch, S&P Say
It is true there is a low public debt and high…
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…Chris Estrella, a Filipino social worker, says he led a troop of five porters out of a Mindanao jungle in January 2000 with a weather-beaten iron and leather box crammed with $25 billion of U.S. government bearer bonds.
“The elders
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…It’s that time of year again…
The time when I re-balance my portfolio of index funds.
There’s nothing fancy about this re-balancing process.
It’s not about stock picking (After a decade on Wall Street and several years off, it has
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