Recently Curated Economic & Market Articles

Chart of the Week

August 17, 2017

The chart of the week is from The Wall Street Journal and shows the incredible migration from active mutual funds to passive/index funds. The underlying article discusses how the world’s largest pension fund (Japanese $1.4 trillion Government Pension Investment Fund) is preparing to move more into active management.

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Hedge Funds Have Stopped Hemorrhaging

August 15, 2017

Bloomberg is reporting on a survey released by investment consulting firm NEPC that shows endowments are reassessing hedge funds and their role in portfolios. Per the article, “almost two-thirds of the survey respondents plan to maintain current exposures” to hedge funds. One potential reason might be that endowments expect lower

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Investor Behavior and Sell Offs

August 11, 2017

Bloomberg has an article describing how investors may react to a potential downturn in the stock market. The author argues that the potential for panic selling in the face of sharp market swoons may be tempered by the recent shift to passive investing and a more disciplined, long-term investor population. However, there hasn’t been a sustained

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Stock Correlations

August 01, 2017

The manager of the Sequoia Fund, noted the difficulty investing in a high correlation world. "Going back to the 1980s and 1990s, stocks did not trade with the high correlation and covariance that they do today. Today everything goes up and then everything goes down, and then everything goes up. In the 1980s and 1990s, some things would go up, some things would do down. I remember brief periods of market declines where half of our portfolio might, I am making these numbers up,

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