Private equity investors are increasingly inclined to put some of their funds in long-term investment vehicles — and they achieve better returns for the longer commitment, according to a new report. The report, “Global Private Equity Report 2018,” reveals that longer holding periods in private equity present an opportunity for superior returns on committed capital in […]
A long-stable asset class got a jolt in the first quarter due to the recently enacted tax law. The Bloomberg Barclays Municipal Bond Index dropped 1.1% in the first three months of 2018. This represents the biggest first-quarter decline in 15 years. The new tax law signed by President Trump and rising interest rates have combined […]
Addicted to CNBC’s breathless market updates? Fascinated by hot investments of the moment? Sorry, the data say that sticking with one investment strategy is a better by far vs. chasing higher returns by constantly switching from one investment to another. Like a successful marriage, a profitable investment strategy is sustained over the long term, good […]
Thanks to a long-running stable interest rate climate, holders of low-grade corporate debt — so-called “junk bonds” — enjoyed higher returns while assuming relatively minimal additional risk. Now that the Federal Reserve has announced its intention to raise rates, though, the good times for high-yield bonds may be over. Recently, investors have become increasingly leery […]
Jamie Dimon, the CEO of banking giant JP Morgan, is warning shareholders of the potential for a massive exodus from stocks driven by supposedly “passive” index fund investors. Index funds own the entire stock market rather than selecting specific stocks. The slow and steady rise in stock market valuations has led many investors to choose […]
Amazon, the online retail giant, has been the latest object of President Trump’s Twitter fury. Last week, Trump continued his attacks on the company and the negative economic impact of its business practices, claiming that “they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing […]
For the past 10 years, the Federal Reserve’s fiscal policy of easy money helped fuel booming stock and bond markets. Since 2009 the value of the S&P 500 Index of large U.S. stocks has close to tripled. Meanwhile, interest rates remained at historically low levels. The Fed now is signaling an end to the era […]
Following revelations of misuse of customer data by social media giant Facebook, stocks of the big players in the tech industry dropped precipitously last week. Facebook, Amazon, Apple, Netflix and Google — the so-called FAANG stocks — have shedded more than $397 billion in market cap since the Nasdaq Composite peak on March 12. All […]
Reeling from the effects of public outrage over abuse of its customers private data, the stock of Facebook, once the the golden boy of Wall Street, has taken a beating. Facebook’s share price is down 15% since mid-March, leading a broad exodus from new economy stocks. To add insult to injury, Apple CEO Tim Cook […]
Technological changes over the last two decades have transformed the way people live and work. They’ve also impacted the way people perceive investment risk, according to new research. A recently published research paper that shows a connection between technological disruption and the substantive changes that have taken place in investor behavior. Researchers Stavros Panageas at UCLA […]
