Did The Economist miss the point?
Ten days ago, a teaser on the cover of The Economist proclaimed the “Death of the fund manager”. Inside, there was a leader – which is what The Economist calls its editorials – and a lengthy article. Given the tone of the teaser, the content is hardly surprising. It berates financial intermediaries for their greed […]
Alpha in tactical asset allocation
It is easy to beat the benchmark of a balanced portfolio in the long run. All we have to do is systematically overweight the riskier asset classes to capture their higher risk premiums. This may add some volatility but will almost certainly lead to a better long-term performance. Many years ago, I suggested this approach […]
Wealth preservation: an illusion?
This is the second in a short series of posts on the recent update of the Dimson-Marsh-Staunton long-term return study sponsored by Credit Suisse. Barron’s publishes annual lists of the richest families in the US and around the world. One striking aspect of those lists is the absence in the top 100 of the great […]
The long-term risk of bonds
This is the first in a short series of posts on the recent update of the Dimson-Marsh-Staunton long-term return study sponsored by Credit Suisse. The Dimson-Marsh-Staunton study, first published twelve years ago under the title Triumph of the Optimists, covers a number of important investment issues based on an abundance of statistical information on equities, […]