Diversification: Where’s My Free Lunch?
Much of asset allocation work rests on the back of modern portfolio theory, which asserts that diversification stands as the lone “free lunch” offered up by the market gods. But in reality, the ascent of target date funds (largely built on modern portfolio theory) since the passage of the Pension Protection Act in 2006 has […]
Uncertainty Beyond the Next Eclipse
Unlike the laws of physics driving our solar system, our financial markets can surprise investors with moments of darkness.
Expectations and Diversification
The Capital Markets Research Group conducts strategic planning projects, education sessions and general research for our clients. The Group’s discussions are often very big picture–in what should we invest, and why? These discussions are on the front end of potential changes to strategy, to plan design, to portfolio implementation, and to plan sponsors’ expectations for […]
What We Are Seeing: Insights From Capital Markets Research
The Capital Markets Research Group conducts strategic planning projects, education sessions, and general research for our clients. Recent discussions have been prompted by the low interest rate environment, low return expectations, and investor frustration with the seemingly high cost of diversification. Other themes we see include: Incremental risking-up of portfolios to reach for return Concerns […]