Browsing: inflation

Posts Tagged ‘ inflation ’

Worried About Inflation? Get Real

Apr 23rd, 2021 | Filed under: Newly Added, The Global Economy & Currencies, Commodities, Finance & Economics

By Keith Black, PhD, CFA, CAIA, FDP, Managing Director, Content Strategy, CAIA Association Last July, we discussed Socially Distanced Inflation with the idea that COVID would have a negative effect on employment and output, which would lead to increased business failures. A record amount of monetary and fiscal stimulus combinedRead More

Measuring the Inflation Risk of Three ‘Inflation-Hedges’

Nov 24th, 2020 | Filed under: Newly Added, Risk management, The Global Economy & Currencies, ETFs, Economics, Risk Management Strategies & Processes, Macroeconomics, Commodities, Allocating to Alts, Finance & Economics

By Doris Bao, FRM and Alex Botte, CFA, CAIA, Client Solutions Research team at Two Sigma In our previous post on inflation, we covered how the Local Inflation risk factor in Venn, Two Sigma’s risk analytics platform, is constructed and we reviewed its historical performance. The primary conclusion was thatRead More

Socially Distant Inflation

Jul 16th, 2020 | Filed under: Newly Added, The Global Economy & Currencies, CAIA Alternative Viewpoints, Alternative Investments in Context, Finance & Economics

By Keith Black, PhD, CFA, CAIA, FDP As the COVID-19 lockdowns start to ease across the country, governmental entities often have phased approaches for opening. Smaller crowds, smaller businesses, and more socially distanced activities are the first to reopen. It may take until 2021, at the earliest, to return toRead More

The Inflation-Deflation Debate and its Implication for Asset Allocation 

Jun 28th, 2020 | Filed under: Newly Added, Risk management, Asset allocation, Asset Allocation Models, Alternative Investments in Context, Risk Management Strategies & Processes, Allocating to Alts, Finance & Economics

By Alan Dunne, Managing Director, Abbey Capital One of the key questions facing investors at the moment is whether inflation or deflation represents the bigger risk for the coming years. Economists are split on this and one of the reasons for the uncertainty is that COVID-19 represents both a supplyRead More

The Verdict Is In: It’s a Soft Landing for the Global Economy

Aug 1st, 2019 | Filed under: Financial Economics Theory, Newly Added, The Global Economy & Currencies, Economics, The Alts Industry, Macroeconomics, Finance & Economics

Neuberger Berman has long pressed the investment thesis that the prolonged recovery from the depths of the Global Financial Crisis would end, when it ended, with a “soft landing.” There will be a slowing of growth, and with that an increase in volatility, but it need not involve a “hard”Read More

Endowments Should Prepare for Risks of Deflation

Apr 4th, 2012 | Filed under: Institutional Investing, Alpha Strategies, Risk management, Endowments & Foundations

Traditionally, the endowment model has involved holding illiquid assets, and benefitting from the premiums that markets pay institutions with a tolerance for illiquidity. Further, this self-image of endowments as buy-and-hold institutions leads to a de-emphasis of risk management, in the expectation that near term zigs and zags will level out nicely if given enough time. Mark Schmid and Que Nguyen, both of the University of Chicago, break with this model in a recent paper. They say, “While we continue to pursue strong returns, we must do so without taking on excessive risk to the University."Read More