Building Optimized Portfolios with JPMorgan’s 2021 Forecasts
In developing a long-range investment strategy, investors conduct strategic asset allocation (SAA) work in pursuit of the portfolio that best...
Economics
Zero Emissions Vehicles: Making Sense of the Transition with SASB Standards
“The days of the internal combustion engine are numbered.” — Neal E. Boudette and Coral Davenport, The New York Times,...
Book Review: Machine Learning for Asset Managers
Machine Learning for Asset Managers. 2020. Marcos M. López de Prado. Cambridge University Press (Cambridge Elements in Quantitative Finance Series)....
Refreshing Revenue, the Cash Conversion Cycle, and Free Cash Flow
Like it or not, companies are judged by flawed standards. GAAP sometimes misrepresents business reality. Let’s use that fact to...
How to Manage Inflation Risk: The Local Inflation Factor
Governments around the world have deployed massive stimulus to battle the economic effects of COVID-19. And as economies reopen, there...
COVID-19 and 17 May: Tax Day Considerations for Clients
With Tax Day in the United States delayed until 17 May, now might be a good time to talk to...
Trading at All Hours: The Portfolio Implications
Millions of retail investors opened up brokerage accounts this past year and many took to trading throughout the day as...
Capitalism Is Dead, Long Live Debtism
Notwithstanding its many failings, capitalism has been a formidable engine of wealth creation and economic development over the last three...
Myth-Busting: Earnings Don’t Matter Much for Stock Returns
Introduction What drives stock returns? Earnings, right? So, what drives earnings? Likely economic growth. After all, it’s much harder for...
Book Review: Fed Watching for Fun and Profit
Fed Watching for Fun & Profit: A Primer for Investors. 2020. Edward Yardeni. YRI Press. Fed Watching for Fun &...
Corporate Sustainability: Three Reasons Why It’s Even Better Than You Think
Why be a good company? What benefits does being sustainable, diverse, and inclusive bring? There are several key advantages. But...
Moats or Market Power?
“The key to investing is not assessing how much an industry is going to affect society, or how much it...
Fraud and Deception Detection: Five Language Fingerprints
Last month, I described how computer-aided text-based analysis can help uncover fraud and deception in company communications. But what other...
Five Investing Success Stories from Five International Women
This International Women’s Day we all need and deserve some upbeat, inspiring, and enriching stories. After all, a lot has...
A Call to Action: Aligning Gender Lens Investing and ESG
Gender lens investing (GLI) is a thematic environmental, social, and governance (ESG) strategy that is inspired by women in leadership...
How Alpha Hides in GAAP Accounting: Return on Equity
Every mismatch between GAAP metrics and business reality is a potential alpha opportunity. You can find significant alpha in the...
Book Review: Too Smart for Our Own Good
Too Smart for Our Own Good: Ingenious Investment Strategies, Illusions of Safety, and Market Crashes. 2018. Bruce I. Jacobs. McGraw...
How Long Does Competitive Advantage Last? A Sector Analysis
Economic theory holds that absent monopoly powers and barriers to entry, every firm’s competitive advantage in an industry will diminish...
Aswath Damodaran on the COVID Crucible: A Play in Three Acts
Aswath Damodaran determined early on not to treat the COVID-19 crisis like previous market shocks. As the pandemic unfolded, he...
ESG Matters: Global Trends and Transitions
How are women growing in importance in the investment ecosystem? How are firms approaching the sustainability journey? What is the...
Beyond Intention: Diversity, Equity, and Inclusion Require Action
Defining DEI Diversity, equity, and inclusion (DEI) initiatives can feel like a “check-the-box” exercise at many companies. But at PNC...