by clare@gibit.co | 29 Oct 2019 | Investment Strategies, The World Economy
China will soon become the largest economy in the world, but many Westerners (myself included) know very little about it. I’ve thus tried to educate myself about the Chinese economy, and earlier posted a summary of an excellent article on corporate...
by clare@gibit.co | 29 Oct 2019 | Investment Strategies, The World Economy
John Cochrane of Stanford has written an excellent review of recent advances and future research directions in macro-finance. Macro finance studies the relationships between asset prices (e.g. the level of the stock market) and economic conditions (e.g. whether we’re...
by clare@gibit.co | 8 Sep 2016 | Investment Strategies
Andy Haldane, the Chief Economist of the Bank of England, said that pensions are so complex that even someone “moderately financially literate” like he can’t understand them. This complexity certainly applies to pension tax rules when combined with...
by clare@gibit.co | 20 Mar 2016 | Investment Strategies
The first stock market trading strategy ever discovered was the size anomaly. Banz (1981) found that small stocks outperform large stocks, even after taking into account their higher risk. This finding has had profound implications, such as the creation of small stock...
by clare@gibit.co | 6 Feb 2016 | Executive Pay, Investment Strategies
Executive compensation is a controversial topic. US CEOs earn 373 times the average worker, and so it takes them less than a day to earn the same as an average worker does in a whole year. But, despite attracting most attention and ire, the level of pay is actually...
by clare@gibit.co | 3 May 2015 | Investment Strategies
How does an investor choose which mutual fund to invest in? She’ll want a measure of the fund manager’s skill, and the most natural measure is his past performance. But, a ton of research has systematically found that past performance doesn’t predict future...
