Economics
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From the Archives: Daniel Kahneman on Better Decision Making
Posted In: Behavioral Finance, Drivers of Value, Economics, Leadership, Management & Communication Skills, Portfolio Management Editor’s Note: In memory of Daniel Kahneman, we have reposted this Enterprising Investor article which...
Posted In: Behavioral Finance, Drivers of Value, Economics, Leadership, Management & Communication Skills, Portfolio Management Editor’s Note: In memory of Daniel Kahneman, we have reposted this Enterprising Investor article which shares insights from his presentation at the 2018 CFA Institute Annual Conference. Nobel laureate Daniel Kahneman transformed the fields of economics and investing. At their most basic, his revelations demonstrate... -
A Case for Broadening Retail Access to Private Markets
The surge of retail investor activity in public markets is a well-documented phenomenon. Digital brokerage platforms and online learning channels are the primary drivers. They...
The surge of retail investor activity in public markets is a well-documented phenomenon. Digital brokerage platforms and online learning channels are the primary drivers. They often give users the illusion that they can compete with large institutional investors and capitalize on market volatility. Retail investors comprised 25% of total equities trading volume in 2021, which... -
Exploring the Indian Startup Frontier
Wise investors should keep their eyes fixed on India and its booming startup ecosystem, which is the third largest as of 2024. Since Prime Minister...
Wise investors should keep their eyes fixed on India and its booming startup ecosystem, which is the third largest as of 2024. Since Prime Minister Shri Narendra Modi began the Startup India initiative in January 2016, funding for the country’s startups has increased 15-fold. The coming year promises even more growth for this ecosystem, with... -
Don’t Bank on the Equity Risk Premium
Editor’s Note: This is the first in a series of articles that challenge the conventional wisdom that stocks always outperform bonds over the long term...
Editor’s Note: This is the first in a series of articles that challenge the conventional wisdom that stocks always outperform bonds over the long term and that a negative correlation between bonds and stocks leads to effective diversification. In it, Edward McQuarrie draws from his research analyzing US stock and bond records dating back to... -
Book Review: The Ownership Dividend
The Ownership Dividend: The Coming Paradigm Shift in the U.S. Stock Market. 2024. Daniel Peris. Routledge — Taylor & Francis Group. Could the next opportunity...
The Ownership Dividend: The Coming Paradigm Shift in the U.S. Stock Market. 2024. Daniel Peris. Routledge — Taylor & Francis Group. Could the next opportunity in the stock market be with dividend stocks? According to Daniel Peris, the answer is “yes,” and after reading his insightful book, The Ownership Dividend: The Coming Paradigm Shift in... -
Looking for Gains in Private Equity? Tips for the Everyday Investor
Looking for a way to “beat the market” in 2024 and beyond? If so, you’ve probably heard about the market-beating potential of private equity investments....
Looking for a way to “beat the market” in 2024 and beyond? If so, you’ve probably heard about the market-beating potential of private equity investments. The most recent U.S. Private Equity Index from Cambridge Associates reports an average return of about 15% from June 2003 to June 2023, compared to 10% on the Russell 3000... -
The Remarkable Story of Style Regimes: For the Data-Driven Investor
Style regimes constitute one of investors’ largest risk factors, second only to overall equity exposure. After 15 years of growth style dominance, the return of...
Style regimes constitute one of investors’ largest risk factors, second only to overall equity exposure. After 15 years of growth style dominance, the return of intra-market volatility has prompted renewed interest in style framework and cyclical rotations. By reacquainting ourselves with the dynamics of style cycles, we can better understand how these portfolio building blocks... -
Book Review: Milton Friedman | CFA Institute Enterprising Investor
Milton Friedman: The Last Conservative. 2023. Jennifer Burns. Farrar, Straus and Giroux. If you were asked to identify a famous economist based on the following...
Milton Friedman: The Last Conservative. 2023. Jennifer Burns. Farrar, Straus and Giroux. If you were asked to identify a famous economist based on the following facts, whom would you name? Voted for Democrat Franklin Roosevelt for president in 1936. Supported significant portions of Roosevelt’s New Deal, which some critics deemedsocialistic. Favored moderate Dwight Eisenhower over... -
The Evolving International Cannabis Landscape
The evolving landscape of the non-U.S. cannabis industry mirrors the early growth stages seen in the United States, which we outlined in our preceding article...
The evolving landscape of the non-U.S. cannabis industry mirrors the early growth stages seen in the United States, which we outlined in our preceding article in this series. As recreational cannabis markets emerge, the consumer base expands from daily enthusiasts, who might even cultivate their own cannabis, to a wider demographic. In the U.S., younger...