Key Points Michael S. Falk, CFA, addresses economic incentives and proposes thoughtful measures to reform and augment social safety nets. Falk emphasizes the need for trampolines to complement safety nets and discusses the impact of the pandemic on socio-economic imbalances. He advocates for opportunity equality, highlighting the contributors and direction of this concept. Falk’s book, “Get to Work . . … Read More

Key Points The US Department of Labor’s proposal to limit ESG investments has sparked controversy ESG integration may lead to difficult tradeoffs between financial gain and social responsibility Academics have found a low correlation between ESG ratings across providers, causing ambiguity The pricing of ESG credentials in stocks may have significant implications for investment strategies Poor ESG performers may outperform … Read More

“The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” — Friedrich Hayek “The use of mathematics has brought rigor to economics. Unfortunately, it has also brought mortis.” — attributed to Richard Heilbroner In finance, everyone loves to make fun of economists. Even economists. Perhaps the field is simply too complex … Read More

“` Key Points – Gen Z is now emerging as a significant consumer base for fintechs, and their digital native upbringing makes them unique targets for financial services. – Fintech companies are seizing the opportunity by introducing various offerings such as Pixpay, Greenlight, Zelf, and Step, tailored to the preferences and needs of Gen Z. – The COVID-19 pandemic has … Read More

Key Points Growing up on a cattle ranch in central Texas, I learned to appreciate the tools of the trade, each with its own unique purpose and characteristics. Financial markets are more like horses than tractors; they have a mind of their own and can be unpredictable, unlike the reliability of a tractor. Investors should move away from the notion … Read More

Key Points Model awareness in investing involves considering the impact of machine learning, AI, and large data sets on decision-making processes. Human-machine collaboration is an essential factor for success and represents an opportunity to be exploited in investing. Adversarial machine learning can be employed to overcome intelligent opposition and optimize models for real-world scenarios. Hybrid human-machine behaviors can improve, worsen, … Read More

Modern society’s misconception that uncertainty can be transformed into calculable risks is examined in the book “Radical Uncertainty” by economists John Kay and Mervyn King. Ancient Greeks did not study probability theory because they believed events were determined by the gods, and there was no place for chance or probability in their thinking. The foundation of probability theory was laid … Read More

Key Points: When it comes to investment strategies, private equity and venture capital are two distinct approaches that cater to different stages of a company’s lifecycle. While the goal of both is to generate a return on investment, the way they achieve this goal can vary significantly. Private Equity: Investing in Established Companies Private equity (PE) involves investing in established … Read More

Reasons to Consider Starting an Investment Management Business There are several compelling reasons to consider launching an investment management business. Here are six to consider: Things to Think About Before Launching an Investment Management Business Before launching an investment management business, it’s essential to consider several key factors. Here are six important things to think about: Regulatory Compliance: Understanding and … Read More

It is sometimes stated that Europe is built on crises. The COVID-19 pandemic, following Brexit, has broken the taboo on the creation of a long overdue pan-European fiscal policy. As predicted, the EU took bold steps towards establishing a common bond to finance a fiscal expansion at the center. However, the creation of a safe asset that eurozone banks could … Read More