Key Points Greenspan’s decision to leak Fed plans led to the birth of Fed Put and a long love affair between the Fed and speculators. Global debt reached $255 trillion in 2019, and the US nonfinancial business debt has swelled to an estimated 96% of GDP. The current crisis requires more than just liquidity, as many weak businesses are at … Read More

Key Points – The death of George Floyd and the resulting protests dominated conversations among institutional investors – Home country bias, confirmation bias, and racial implications impact investors’ decision-making – Understanding consensus, studying story framing and frequency, and acknowledging biases are crucial steps for investors – In 2020, it’s essential to discuss racial and political issues openly and professionally I … Read More

A low interest rate environment makes growth stocks the only ones worth researching. Professional investors, wealth managers, and commentators have been expressing concerns about the decline of value stocks, as they have underperformed growth stocks significantly over the past decade. In light of this underperformance, a closer examination is necessary to determine whether fundamental investors should continue to focus on … Read More

Asset managers must clearly define responsibility and ensure that their products align with this definition. Additionally, they need to invest in data, technology, and people to prioritize improving outcomes over cutting costs and reducing headcount. Key Points Asset managers need to define responsibility and integrate it into their products and mission. Investing in data and technology is essential for creating … Read More

Evaluating the impact of Republican and Democratic economic policies. Exploring the relationship between political parties and economic performance. When it comes to the economy, the debate over which political party—Republicans or Democrats—is better for the country’s financial well-being has been ongoing for decades. While both parties have their own approaches to economic policy, it can be challenging to determine which … Read More

Key Points Asset managers are using artificial intelligence to revamp their product distribution through distribution analytics. Understanding and evaluating the sales team’s performance is crucial for investment management. Focusing on sales and relationship strength, marketing and brand strength, product performance, and luck drives asset flows into an investment product. Recently, there has been a focus on target prioritization and qualification, … Read More

The Income Factory: An Investor’s Guide to Consistent Lifetime Returns. 2020. Steven Bavaria. McGraw-Hill Education. Professional investors can find unique, well-differentiated ideas among the abundant output of many contributors to Seeking Alpha, a crowd-sourced content service for financial markets. A standout among the many contributors is Steven Bavaria, with his message of long-term returns (ideally, longer than 20 years) produced … Read More

Key Points Equity prices have remained on an upward trajectory despite the ongoing global pandemic. The BDO team conducted a study analyzing more than 20,000 equity analyst estimates for 428 public companies across 24 industries to understand the impact of COVID-19. There is a significant disconnect between the expected impact of the pandemic on revenues and profits and the performance … Read More