Forex: 10 Events to Watch Next Week In order of release 1. UK Consumer Price Index (Aug 19) 2. New Zealand Dairy Auction (Aug 19) 3. RBA Semi-Annual Testimony (Aug 19) 4. Bank of England Minutes (Aug 20) 5. FOMC Minutes (Aug 20) 6. HSBC China Manufacturing PMI Aug Flash…
The optimal portfolio of risky assets is exactly the same for everyone : 1. Investors should control the risk of their portfolio not by reallocating among risky assets, but through the split between risky and risk-free assets. 2. The portfolio of risky assets should contain a large number of assets…
There are serie parallels between the stock market’s recent behavior and how it behaved right before the 1929 crash. That at least is the conclusion reached by a frightening chart that has been making the rounds on Wall Street. The chart superimposes the market’s recent performance on top of a…
There is a reason why I recommend everyone download (and read) this document. Not only is it free but it provides both novice and experienced investors with some perspective on some very basic issues. For example, the next time some one says you should divest your portfolio of so-called “sin…
The optimal portfolio of risky assets is exactly the same for everyone :
1. Investors should control the risk of their portfolio not by reallocating among risky assets, but through the split between risky and risk-free assets.
2. The portfolio of risky assets should contain a large number of assets – it should be a well diversified portfolio.
Forex: 10 Events to Watch Next Week In order of release 1. UK Consumer Price Index (Aug 19) 2. New Zealand Dairy Auction (Aug 19) 3. RBA Semi-Annual Testimony (Aug 19) 4. Bank of England Minutes (Aug 20) 5. FOMC Minutes (Aug 20) 6. HSBC China Manufacturing PMI Aug Flash…
This paper considers an asset market where investors have private information not only about asset payoffs, but also about their own exposure to an aggregate risk factor. In equilibrium, rational investors disagree about asset payoffs: Those with higher exposure to the risk factor are (endogenously) more optimistic about claims on…
There is a reason why I recommend everyone download (and read) this document. Not only is it free but it provides both novice and experienced investors with some perspective on some very basic issues. For example, the next time some one says you should divest your portfolio of so-called “sin…