2020 again demonstrated that RIAs, Private Banks, independent Broker Dealers, Wealth Management platforms and financial firms can’t provide quality advice to everyone profitably. Few customers want to pay for it, and many investors don’t trust financial advisors. Meanwhile, traditional forms of asset allocation advice are costly, inefficient, and impersonal. We estimate that retail investors lose more than $400 billion annually in advisor fees and portfolio inefficiencies. This value destruction is both explicit in typical 1% or higher advisory fees charged and implicit in 0.5% or more asset allocation inefficiency. Moreover, these costs are in addition to other contracting frictions, product commissions and costs. To serve a broader audience, advisors put investors in cookie cutter, one size fits all “model portfolios,” which in turn commoditizes their own service and expertise. Model portfolios also fail to account for personal investment views, preferences, and limitations. Worse still, clients rarely know how inefficient their allocations really are and have no objective means to measure and value advisor performance.
Never judge a book by its cover, but rather by its table of contents. Check out the TOC here and decide for yourself..
Active Equity Management provides a comprehensive understanding of technical, fundamental, and economic signals used in equities trading. It explores in detail how such signals may be created, rigorously tested and successfully implemented. Filled with practitioner insights derived from years of experience in the hedge fund industry, and supported with academic theory, Active Equity Management provides an in-depth review of basic financial concepts, examines data sources useful for equities trading, and delves into popular seasonal effects and market indicators. It also highlights best practices in model development, portfolio construction, risk management, and execution. In combining topical thinking with the latest trends, research, and quantitative frameworks, Active Equity Management will help both the novice and the veteran practitioner understand the exciting world of equities trading.
Buy your copy on Amazon :
How time flies! I had the privilege to lead thought leadership ( inter alia) at Citi during the tumultuous 2007 Global Financial Crisis. During that period I also edited the Alternative Investments Journal for its corporate clients. I found this issue floating online – I wrote 3 out of the 5 articles here. All of them have stood the test of time, sans the piece on Asian Real Estate, which of course has come a long way since 2008. This Journal, discontinued after my departure, had some cutting edge investment pieces.
Value stocks are priced cheaper than growth. Market expectations of economic growth are low for 2020
Sectors most punished in Q1 have rebounded most in Q2. Especially energy after oil prices rise and economy opens. Financials and industrial pricing in future growth and consumer discretionary reflects fundamentals. Technology, concentrated in 5 firms, a big part of S&P 500 and likely overvalued.
“Private labs start testing for corona virus, prompting concerns about cost and insurance co-pays” screams a news headline. Here, in this visual, is how I interpret this – follow the money!
Emmanuel Macron of France clearly upstaged all other EU leaders and certainly President Trump at the NATO summit this week. Here is my analysis on his vision for Europe and his increasing assertiveness.
#Germany: Lead, follow, or get out of EU’s way! My political view from beautiful #FreiburgCathedral, Germany ..built around 700 years ago. What does Germany want to be when it grows up?
ActiveAllocator revises macro eco outlook for Switzerland. Forecast diverges from OECD and Wall Street consensus…
#ActiveAllocator response to today #WSJ headlines ” Oil Prices Plunge as Oversupply…”. Frames issue in wider context of #Energy investing and #IEA World Energy Outlook 2018
I am totally and fervently opposed to Trump’s trade tariffs that is going to harm US consumers. My reasons are: