In this Investment Insight, we explore: How inflation, rising interest rates, and bond prices intersect. The value of active management when investing with bonds. Strategies for investing when rates are rising. After a decade-long slide in interest rates, bond investors may be facing a period of sustained rate hikes, prompting worries about the implications for
In this investment insight, we explore: How investing has evolved in recent years. The need to prioritize among essential, fundamental, and supplemental goals. How assigning “success probability targets” helps further goal achievement. The inception of modern portfolio theory (MPT) devised in the 1950s by Nobel Prize-winning economist Harry Markowitz, revolutionized investment management. It created a
This investment insight for the institutional investor discusses a more refined method of managing and mitigating loss. The concept of risk is typically not well defined and can even be subjective, making “risk arithmetic” challenging to understand if not outright misleading. Standard deviation, the broadly used default risk metric, has significant limitations. The concept of
