Gold: A Solution for Zero-Beta Satellites
Only a few strategies seem to be providers of crisis alpha or outperformance in time of significant stress in traditional betas: gold seems to fit that definition.
Author Archive
The Importance of Market Structure
Future successful investing will require active political analysis and an increased level of stakeholder activism to be part of the rule-making process.
Are Financial Markets Doomed? MF Global Bankruptcy Strikes at the Core of Markets
If our financial markets cannot guarantee safety of funds deposited with brokers or banks, our economic system will fall into a dark medieval state.
Stop the Madness!
Markets are dysfunctional because they mirror dysfunctional political systems and political players and dysfunctional monetary policies.
The Inefficient Market Advantage
The world is messy and a more pro-active approach than the Market Portfolio Theory of the 60s is needed to build portfolios that can stand the stress of our times.
Currency Wars and the Future of Money
When in 1992 Francis Fukuyama published his best-seller The End of History and the Last Man, he made the case that the success of Western Liberal Democracy was going to sign the end of man’s evolution toward its final form of government and so mark the end of history. The book made me chuckle then [...]
The 10 Essential Investment Rules
At the end of 14 grueling weeks in my Portfolio Management class, I wrap it up with this 10-rule list. After all the fancy formulas and complex graphs we review in class, the art of investing comes down to common sense and risk management. Based on my many years in the trenches, managing money for [...]
“A New Kind of Capitalism:” Panel Discussion with Pepperdine Faculty
Can’t view this video? Click here to open in new window. “We are living through extraordinary economic times; many of the accepted market conventions have disintegrated in the last two years. Is there a new kind of capitalism in our future and what are the most important areas of intervention?” This is the question that [...]
Wall Street Flash Crash Brings Re-evaluation of the Dangers of High Frequency Trading
In a recent blog post, adjunct finance professor Davide Accomazzo discussed the serious structural deficiencies that exist in our financial markets, and the liquidity vacuum that may result. On May 6, 2010, the stock market took a drastic dive, resulting in the second largest point swing and the biggest one-day point decline in Dow Jones [...]
The Future of the Global Currency Imbalance
Can’t see the above video? Click this link to watch. In this video, Davide Accomazzo, adjunct professor of finance, discusses the global currency imbalance and what implications it carries. Questions for Professor Accomazzo: 1. What is the “global savings glut?” 2. How has the United States tried to reverse current account deficits in the past? [...]
