Despite what many would like to believe, the active vs. passive debate is very much alive and kicking.In fact, it has never been so relevant. One just needs to look at flows, performance, and regulatory agendas. All seem to lean toward the passive camp, while active managers are trying to find ways to keep their jobs.
Read MoreComparing mortgage refinance options with varying terms is a unique mathematical challenge, and also one that consumers face often in a declining rate environment.
Read MoreI recently spoke to a finance class at a local college, a group of third-year finance students looking for an opportunity to hear from industry professionals. I have had the pleasure of speaking to groups of students like this on various occasions and I always enjoy it.
Read MoreBenjamin Graham made the call for a special professional rating for security analysts in a now-famous piece written in January 1945. The purpose of such a designation was to reassure investors that those giving advice regarding security transactions were qualified, knowledgeable professionals with high ethical standards.
Read MoreIf you’re reading this, you may be thinking about the CFA® designation and what it can do for your career. Or you might already be a candidate pursuing the charter.
Read MoreI first learned about the CFA Program as an undergrad finance major in the mid-1980s. I had always had an interest in the stock market, and would frequently read through the stock tables in the local newspaper and in the copy of Barron’s at the school library.
Read MoreThe one subject that really stuck with me long after having passed the CFA® Level III exam was that of behavioral finance. Thanks to CFA Institute for introducing me to this new—perhaps lifelong—buddy. When I started preparing for the behavioral finance section, it didn’t come across as very interesting and didn't hold my focus for long.
Read MoreWhen creating the CFA exam, there’s a natural tendency to simplify so that participants from different backgrounds can all gain an understanding of multiple areas of finance.
Read MoreBuy and hold (B&H), constant mix, and constant proportion portfolio insurance (CPPI) are commonly used dynamic strategies for rebalancing portfolios.
Read MoreAlternative Risk Premia (ARP) portfolios have started to supplant hedge fund investments in institutional portfolios. Perceived lower cost, better liquidity, and improved transparency have diverted assets or created new demand within the alternative space. As part of the move toward factor investing, we will discuss what ARPs are and their pros and cons for investors.
Read MoreBack in January of 2020, which feels like years ago, I wrote an article pointing out that credit markets were setting themselves up for a potentially dangerous outcome. In no way could I or anyone else have predicted that a global pandemic and worldwide shutdown of entire economies would be the catalyst, but the conditions were ripe for any spark to start the fire.
Read MoreChoosing to embark on the path to your CFA charter is a big decision that needs to be made only after understand the commitment needed to succeed.
Read MoreWe witnessed a remarkable change in sentiment after November of 2016.
Read MoreAlternative data sets have been expanding rapidly in the last five years. From satellite imagery to POS transaction receipts and phone location data, the realm of the measurable has expanded, requiring infrastructure and skills to exploit properly. AI and machine learning are helpful, but is it an intellectual pursuit or adds value to a fundamental process?
Read MoreAs you go about your daily life, especially when making choices involving some sort of trade-off (exchanging money for goods and services, exchanging time for money, making investment decisions, deciding how to get the best value for money on your weekly grocery trip), you probably think of yourself as cool, calm, rational, and in control.
Read MoreThe old world of investing has lately been crumbling. Passive investment management has captured the bulk of equity inflows, which has fueled remarkable growth in index mutual funds and exchange-traded funds (ETFs).
Read MoreFor my entire career as a trader, portfolio manager, and investor, I've relied on a combination of systematic (or rules-based) methodology, fundamental analysis (understanding the trends of significant economic indicators), and technical analysis (the historical review of price data and charts) to understand market trends and actions. The building blocks of successful active management (alpha generation) must incorporate elements of each of these analysis tools.
Read MoreYou spend six months ignoring your family, blowing off close friends’ weddings, and generally being an irritable pain in the butt. When your friends see you, the first question they ask is, “How’s CFA studying going?” because they know you have nothing else more important going on in your life. At least all your hard work pays off, right?
Read MoreEveryone feels stress and pressure in any significant contest. Prepared or not, when the chips are down we all feel our adrenaline rise. Y
Read MoreAnyone who starts working toward the CFA charter has heard stories of people with a PhD in finance or even professors who fail the Level I exam. There are multiple reasons for this, in my opinion.
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