Over the last three decades, Indian equity markets generated strong investment returns with local currency returns of nearly 15%. In this article, we show that adding a global equity allocation resulted in lower portfolio risk. Additionally, against the commonly held perception, the improvement in risk did not come at the expense of investment returns.
The low-yield environment manufactured by central banks has encouraged and precipitated yield-seeking speculation. Investors and speculators alike have taken up a near-religious conviction in the demi-god status of central bankers. Will these central bankers continue to enjoy their god like status indefinitely or will they disappoint their followers?
In this article, I provide evidence that GDP growth rates do not correlated well with investment returns while refuting the claim of a prominent investment manager from India that GDP growth rates are somehow directly linked with investment returns.
Do Investors Intelligence bulls and bear readings have predictive ability? In this post, I discuss a model for analyzing II readings and their role as a sentiment analysis tool.
My telephonic interview with Cris Sheridan of Financial Sense where we discuss my article on U.S. Corporate Profit Margins and why are they likely to revert to their long-term mean.