J.P. Morgan Outlook Implies Satellite Bonds Are King
J.P. Morgan's 2016 capital market assumptions imply that satellite bonds are king and core stocks and bonds must be complemented with alternative exposures.
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Uncertain Alpha
Basing decisions solely on alphas can lead to disaster. Knowing the uncertainty and the model associated with alpha can help avoid costly errors.
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Are Stocks Actually Undervalued?
With investors reaching broad consensus that the market is overvalued, we explore the arguments for why the market may actually be undervalued.
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Low Volatility is Not Low Risk
Volatility and risk are often treated as the same thing, but low volatility ETFs have many risks that investors may not be aware of.
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Finding 7.5% Returns
In a world of low interest rates, finding even moderate returns will likely require taking on much more risk.
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Can Dividend (Swaps) Replace Bonds?
Can dividend swaps be used to replace bonds in a low interest rate world? Is the historical dividend risk premium sustainable going forward?
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Rethinking Bonds: Unbundle and Rebuild
In a “lower for longer” era, many objectives that were previously met by core fixed income may require a new way of thinking.
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Risk Managing Risk Management
Developing a robust risk management sleeve requires a thorough consideration of risk management capabilities and costs for each strategy.
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Bond Returns: Don’t Be Jealous, Be Worried
This commentary is available as a PDF here. Summary Popular bond
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Multi-Factor: Mix or Integrate?
Which approach to building a multi-factor portfolio is best: mixed or integrated? The time-varying nature of factor premiums may be the key determinant.
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Alpha’s measurement problem
Active investing often focuses on the pursuit of alpha, but estimating and measuring alpha based on historical returns may be a fool's errand.
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Brexit and Bad Probabilities
Humans are not terribly good at estimating probabilities. We highlight an example of this from recent Brexit commentary.
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6 Reasons Why Your Fund Checklist is Hurting Performance
This blog post is available as a PDF here. Summary Most
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Special Brexit Commentary
This blog post is available as a PDF here. Summary Friday’s
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Math Tests, Birthdays, O.J. Simpson, and Texas Sharpshooters
This blog post is available as a PDF here. Summary Humans are
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Diversification opportunities in fixed income
This blog post is available as a PDF here. Summary Many investors
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Tactical Trend-Following: Core or Alternative?
This blog post is available as a PDF here. Summary Answering whether
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Diversification Will Always Disappoint
This blog post is available as a PDF here. Summary For its
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Crisis whack-a-mole
This blog post is available as a PDF here. Summary In a
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The State of Risk Management
How effective is your method of managing portfolio risk? We
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