Where Markets Fail: Visible Hands

Posted by Jason Apollo Voss on Jul 24, 2017 in Blog, Where Markets Fail | 0 comments Markets are less perfect than commonly assumed. I have discussed their inability to price unknowns; the blindness of the assumptions that underlie market activity; that the implicit presumption that market fungibility bears consequences; and that markets are not systemic. How else do markets fail? They have visible hands, not invisible ones. Markets rely on symmetries between sellers and buyers,...
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Meditation Tips for Investment Professionals: Visualization Meditation

Posted by Jason Apollo Voss on Jun 28, 2017 in Best of the Blog, Blog | 0 comments Meditation provides investors with many benefits. Below are meditation tips from the newly released Meditation Guide for Investment Professionals, the full version of which is available online for CFA Institute members. Visualization meditation, or creative visualization, is a basic meditation practice that features a tremendous variety and depth of techniques. As such, it is difficult to...
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Where Markets Fail: Markets Are Not Systemic

Posted by Jason Apollo Voss on May 30, 2017 in Blog, Where Markets Fail | 0 comments How else do markets fail? Markets are usually not systemic. Instead, from the bird’s-eye perspective of “Capitalism,” many businesses are “opportunities” in the same way that it feels good to hit yourself in the head with a hammer: It’s much better once you stop. For example, the rising sea levels induced by climate change necessitate the construction of seawalls to...
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The Active Equity Renaissance: Renaissance Investment Management Firms

Posted by Jason Apollo Voss on May 23, 2017 in Active Equity Renaissance, Best of the Blog, Blog | 0 comments Throughout The Active Equity Renaissance series, we have pointed out the obvious need to overturn modern portfolio theory (MPT) and replace it with something better. How have we done this? By describing the broken 1970s model of portfolio management, enumerating what we call The Cult of Emotion, and declaring the fall of MPT. But what should replace MPT? We first proposed new frontiers of risk...
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The Active Equity Renaissance: Renaissance Portfolio Management

Posted by Jason Apollo Voss on May 17, 2017 in Active Equity Renaissance, Best of the Blog, Blog | 0 comments What can we do to inspire the renaissance in active equity portfolio management? Over the course of The Active Equity Renaissance series, we have dismissed the broken 1970s model of portfolio management and the cult of emotion. We also charted the rise and fall of modern portfolio theory (MPT), considered new frontiers of risk assessment, and discussed behavioral portfolio management concepts....
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The Active Equity Renaissance: Behavioral Financial Markets

Posted by Jason Apollo Voss on May 8, 2017 in Active Equity Renaissance, Best of the Blog, Blog | 0 comments We have questioned many orthodoxies of modern portfolio theory (MPT) in this series, challenging currently accepted models of financial markets and exploring the decline of MPT and the folly of using volatility as a measure of investment risk. But in undermining the foundations of MPT, what do we propose to take its place? Behavioral Finance Is a More Promising Alternative It is time to move...
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