Key Points: Investing in the Era of Climate Change by Bruce Usher explores the implications of climate change for the investment community. Usher identifies various investment strategies to mitigate climate-related risks, including risk mitigation, divestment, ESG investing, thematic impact investing, and impact first investing. The book examines both financial and real assets as potential investment opportunities in the era of … Read More

The Russia-Ukraine War has had significant effects on the global investment community, causing volatility in markets and raising ethical dilemmas for investment professionals. Investment professionals must navigate the complexities of investing in companies involved in military aggression, balancing legality with ethical considerations. War-related issues pose risks to the reputation and credibility of the investment industry, making it important to consider … Read More

– October has a history of being a volatile month for the stock market. – The October scares can be traced back to the agricultural financing cycle in the 19th century. – Farmers would withdraw large sums from banks to fund their fall harvest, causing banks to withdraw funds from larger financial institutions, making the market vulnerable to panics. – … Read More

Automotive industry demand, particularly for electric vehicles (EVs), is declining, leading to challenging pricing conditions. Used vehicle values in the United States have started to decrease after reaching extraordinary highs during the pandemic. China is the largest EV market and is putting pricing pressure on EVs, making exports attractive. With supply chain disruptions in the rearview mirror, EVs are now … Read More

– Skewness in asset returns can result in different investor behaviors. – Some investors prefer stocks with high right skewness, seeking the potential for outsized returns. – Other investors avoid volatile stocks and prefer those with no skewness or left skewness. – Growth stocks tend to exhibit more right skewness in their returns compared to value stocks. – Skewness in … Read More

The private equity industry continues to see growth in fundraising, deal volume, and asset valuations. Private equity firms use various strategies to optimize returns, including maximizing leverage, completing bolt-on acquisitions, improving performance and cash flows, aiming for positive multiple arbitrage, and optimizing the investment holding period. Value bridges are used by private equity firms to demonstrate how they will create … Read More

Key Points: Jobs can be categorized into four categories based on the tolerance for error and whether the problem can be solved by automation or requires human judgment. Traditional computer programs and other technologies can automate certain tasks, but human intervention is often necessary for technical, economic, legal, and regulatory reasons. AI and other technologies can be used to recommend … Read More

Quality small-cap stocks are currently undervalued and overlooked, similar to the aftermath of the dot-com bubble in 2000. The shift of big pools of capital from public markets to private markets has led to a decline in demand for small-cap stocks and a decrease in valuations. Investors are primarily chasing performance from mega-cap tech stocks, causing small caps to be … Read More

In the current scenario of impact investing, emerging markets are something that can not be ignored by financiers. Africa, being the fastest-growing continent with immense potential for technology adoption, natural resources, and human capital, offers both financial and impact opportunities. Jennifer Kenning, CEO and Co-Founder of Align Impact, rightly states, “You cannot be an impact investor without considering emerging markets. … Read More

Key Points: “Demographics Unravelled” by Amlan Roy is a comprehensive review of how population dynamics affect investments and policy decisions. The book covers a wide range of topics including aging, geographical movement, asset pricing, pensions, health, retirement, and policy. Roy emphasizes the importance of understanding the combination of population numbers and tastes in driving markets, rather than age alone. Demographics … Read More