Risk. Capital. Conventional Asset Allocation is Inadequate.
Thursday, 27 March 2014 | 7:45 am
It is almost elementary to professional investors that when investment decisions are made, the appropriate sizing of the investment is based on the quantity of risk that is taken and not the quantity of capital. This has a parallel in the Sharpe Ratio measurement of investment performance. Returns are only useful in the context of
- Published in Articles
No Comments
Inequality and Injustice. Bad Moon Rising
Wednesday, 19 March 2014 | 5:11 am
Inequality has decreased globally, yet this aggregate phenomenon hides a more disturbing picture. As countries have become less unequal, the distribution of wealth and income within countries has become more unequal. If the material and commercial motivation for conflict between nations has receded between nations, it has certainly risen within each country.
- Published in Articles
Divergence Between US Equities and US Treasuries
Tuesday, 18 March 2014 | 1:52 am
The divergence between the US treasury market and US equities can be accounted for. US treasury yields are held down because. Floating rate note issuance is expected to be circa 180 billion USD. This will substitute away some of the fixed coupon issuance. This means less supply of fixed coupons. Tax receipts are up which
- Published in Articles
Singapore Economic Growth and Population.
Monday, 03 March 2014 | 12:25 am
One of the commonly accepted models of economic growth is one where economic growth is determined by capital accumulation, innovation and growth of the labour force. The growth of the labour force quickly translates into growth of the population and particular age groups which are regarded as particularly productive. This is all fine, if
- Published in Articles
Ten Seconds into 2014. More of the same.
Monday, 03 February 2014 | 6:05 am
The current volatility in global markets is unremarkable. What is remarkable is the lack of volatility in the past two years. The macro conditions envisaged in mid 2012 continue to hold. For details see: Investment Strategy In a Crazy World April 2012 To reiterate: Long term global growth rate has stabilized along a slower growth
- Published in Articles