Best Blogs of the Week #248
1 election post. That is all I will bring you. Promise. Overall here are the four most engaging posts from the last three weeks.
Columbia Threedneedle – Election 2016: Lifting the cloud of uncertainty – Changes to tax policies are likely regardless of who wins in November. But it’s questionable how much change can actually be effected considering an expected divided government even if Trump wins.
JPMorgan – Fatter tails and endogenous risk – Although endogenous risks are difficult to quantify, there are ways to recognize and mitigate them. Analysis of flow data and correlation can provide insight into crowding and cross asset dynamics. Stress testing can help quantify potential tail losses, and hedging via non-linear products such as options can help protect against the risks.
Loomis Sayles – – We’re in a “lower for longer” bond yield environment as inflation in advanced economies decelerates and major central banks—the Bank of England, European Central Bank and Bank of Japan—pursue quantitative easing (QE).
Vanguard – Good grief! They’re commoditizing index investing again – While it may be tempting to think that the same application of technology can displace the human element of running an index fund, we have not seen that disruption and probably never will. Indeed, people remain one of the most critical differences across providers.