Apart from Friday, 3 March, markets have pulled back somewhat from their January highs. Are they taking a breather or is this a sign of worse things to come? Meanwhile, we’ve been getting sweater weather here in Singapore. The rain has been relentless and the temperatures have been cold.
The Low-Risk Effect in Equities: Evidence from Industry Data in an Earlier Time
(Financial Analyst Journal)
Using data on US industries, the authors find that low-risk equals higher returns on a risk-adjusted basis. Link to journal article behind paywall. If you have a CFA Institute membership, you’ll be able to access it.
A year after the first rate hike, the Fed still has a long way to go in the fight against inflation (CNBC)
Essentially an overview of what the markets currently think of inflation and the issues surrounding it.
The Real Cause of Sri Lanka’s Debt Trap
(The Diplomat)
I’m no expert in foreign debt markets but it’s international economics 101 that borrowing in other currencies when you have trade deficits or no foreign investment inflows is a disaster waiting to happen.
A Sustainable Investment Strategy That Matches Your Lifestyle Might be a More Sub-Optimal Strategy – Corey Hoffstein (Investment Moats)
A few interesting ideas to unpack. I’ve heard of factoring in your human capital when it comes to asset allocation decisions. What I think is missing is the fact that some people’s human capital is more bond-like than others. I must admit that I know nothing about managed futures so that may be an area I need to learn about. The idea about structuring his investments such that it’ll be simpler for non-finance trained asset holders to stick to the plan is worth thinking about.
Ryan Goh: Life through these eyes 