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  • How Do Cryptocurrencies Correlate with Traditional Asset Classes?

    How Do Cryptocurrencies Correlate with Traditional Asset Classes?

    The crypto market’s recent gyrations following the FTX exchange’s bankruptcy necessitate a fresh look at the evolving relationships between cryptocurrencies and traditional asset classes. Current market dynamics notwithstanding, interest in digital asses remains high: 16% of Americans have either invested in, traded, or used cryptocurrencies, while around 87% say they know at least a little […] More

  • How Goals-Based Portfolio Theory Came to Be

    How Goals-Based Portfolio Theory Came to Be

    The following is excerpted from Goals-Based Portfolio Theory by Franklin J. Parker, CFA, published this year by Wiley. “I’ve heard people compare knowledge of a topic to a tree. If you don’t fully get it, it’s like a tree in your head with no trunk — when you learn something new about the topic there’s […] More

  • Conservatism: De-Risking the Profitability Factor

    Conservatism: De-Risking the Profitability Factor

    Profitability metrics are often the main focus in the search for high-quality stocks. But Profitability is not a defensive factor and may expose investors to a company’s aggressive profit-chasing, among other unintended risks. So, how can such risks be mitigated? By incorporating an additional quality dimension that we classify as Conservatism. By combining Profitability and […] More

  • Bonds and Fixed Income: Where’s the Hedge?

    Bonds and Fixed Income: Where’s the Hedge?

    It is no secret that 2022 has been a rough year for pretty much all asset classes across the board. While US equities have fallen more than 20%, the average fixed-income security hasn’t fared much better: Most are down at least 10%. Of course, bonds and other fixed-income assets are supposed to offer diversification benefits […] More

  • Asset Owners “COP” In on Climate Change

    Asset Owners “COP” In on Climate Change

    The UN Framework on Climate Change (UNFCC) is set to convene the 27th annual Conference of the Parties, commonly known as COP27, in Sharm el-Sheikh, Egypt, next week. The goal is to assess global progress in addressing and mitigating the impacts of climate change, and myriad voices will seek to influence the dialogue. The global […] More

  • Sector and Factor Performance in Wartime

    Sector and Factor Performance in Wartime

    Introduction Before 2020, the threat of a global pandemic shutting down the world economy was not a top-of-mind concern for most investors. Pandemics were nothing new, of course, but no outbreak in recent history had suggested anything near the magnitude of COVID-19. SARS had broken out in 2002 and Ebola in 2014, for example, but […] More