Investing & Economics


Video: What you Need to Know About Valuations, in 6 Minutes

Video:
What you Need to Know About Valuations, in 6 Minutes

In this 6-minute video Adam Butler introduces a simple but novel innovation for modeling equity market valuations. There are reasons to believe average valuations should rise through time in response to changes in market structure. We discuss the conditions that …

The Case for Tactical Alpha, Part 3:The Greatest Trick Wall Street Ever Pulled

The Case for Tactical Alpha, Part 3:
The Greatest Trick Wall Street Ever Pulled

Here, in Part III, we use the framework described in Part II, along with some assumptions about the relationships between global asset classes, to illustrate the relative importance of asset allocation relative to security selection for an unconstrained strategy, such as Global Tactical Asset Allocation. We approach the problem from a theoretical perspective in order to capture the full opportunity set that is available to investors who focus in each domain. In addition, we quantify the proportion of global portfolio breadth that is available to active asset allocators versus stock-pickers given a range of correlation assumptions.