Category: Financial Crisis
| |Let’s ask a simple question. After a decade, what are special lessons that money managers internalized from the Financial Crisis? If there was no financial crisis, money managers would have learned many of the concepts of behavioral finance. Investors would have learned the value of passive investing and ETFs. Asset manager would still have allocated to hedge funds, and diversification strategies would still be employed. Perhaps the Financial Crisis intensified these trends to alternative diversification strategies, but ten years after the crisis many of the concerns, fears, and behavioral changes may have been lost in a bull market … Read more 10 Years after the Financial Crisis: What Have We Learned For Asset Management?
| |I finished reading The End of Alchemy: Banking, the Global Economy and the Future of Money and came away with some useful but simple insights on the current state of finance by the author Melvyn King. … Read more The End of Alchemy
| |The Financial Crisis resurrected the thinking of Hyman Minsky and his “financial instability hypothesis”. With the crisis, there was coined the term Minsky Moment, the time when financial markets collapse after a period of prosperity from the excessive speculation on financial assets. Unfortunately, his insightful views on financial instability never received the attention it deserved before the crisis. It was not structured in the current economic orthodoxy of formal mathematical modeling … Read more Minksy, Volatility, and Skew