– The establishment of the United Nations-backed Principles for Responsible Investment (PRI) in 2006 was a turning point for investors, as it explicitly included environmental, social, and governance (ESG) issues in investment practices. – Sustainable investing encompasses various approaches, including ESG investing, socially responsible investing (SRI), and impact investing. – Larry Swedroe and Samuel Adams provide a comprehensive guide to … Read More

Key Points: – Private market fund valuations and volatility are under debate. – Private equity managers believe they are structurally immunized against disruptive changes. – Private market investments can’t conceal their true results. – Private market valuations are often opaque and methodologies for valuations are a mystery. – The International Private Equity and Venture Capital Valuation (IPEV) Guidelines dictate various … Read More

Central banks around the world are raising interest rates in response to increasing inflation. In June, the US Federal Reserve announced its largest rate hike since 1994. The Bank of England (BOE) and the central banks of Brazil, Canada, Australia, and the European Central Bank (ECB) have also raised rates. These rate increases not only create turmoil in risk markets, … Read More

Key Points: The 3Ps approach, consisting of Perseverance, Perspective, and Positivity, can help in turning unfavorable situations into favorable ones. Perseverance involves showing effort and flexibility in finding a solution. Perspective requires understanding the other person’s priorities and offering a win-win solution. Positivity helps in maintaining optimism and finding creative compromises. Nobody enjoys rejection, but the 3Ps approach can help … Read More

Key Points While a falling stock market can benefit new or underweight investors, not all securities markets exhibit the same dynamic as equities. Crypto tokens have long been debated for their lack of intrinsic value and the disconnect between their price and the product they are meant to represent. Security selection does not seem to make a difference in the … Read More

Crypto enthusiasts often argue that digital coins and tokens are not correlated with equities and can serve as a safe haven during stock market crashes. The belief is that cryptoassets function like “digital gold,” providing a hedge against equity risk and helping investors weather downturns. These bold claims warrant examination, especially in light of the current bear market for stocks. … Read More

Key Points: Inflation remains high at a 40-year high of 9.1%, suggesting that inflationary pressures are not easing. The fiscal theory of the price level (FTPL) explains inflation as a monetary and fiscal phenomenon. Monetary policy alone is not sufficient to curb inflation, and fiscal measures are necessary. The US needs to address its fiscal deficits and repay debts to … Read More

The Revolution That Wasn’t: Gamestop, Reddit, and the Fleecing of Small Investors. 2022. Spencer Jakab. Penguin Random House. Key Points: In his book, “The Revolution That Wasn’t: GameStop, Reddit, and the Fleecing of Small Investors,” Spencer Jakab challenges the notion that the 2021 GameStop short squeeze empowered retail investors. Jakab argues that Wall Street, not the everyday retail investor, is … Read More

Talent is not the most important factor for success; perseverance and effort are essential. Grit, defined as passion and perseverance for long-term goals, is a key predictor of success. Grit is not correlated with measures of talent and can be developed and improved over time. Quality of effort over time is more important than sheer quantity of time when it … Read More

Systemic risks cannot be entirely anticipated, but it is important to have principles and enough capital buffers in place to withstand shocks in the financial system. The ongoing war in Ukraine has the potential to create systemic risks, affecting gas prices, energy prices, and food prices. The key to managing risk in the financial system is having sufficient equity buffers … Read More