Eyes Wide Shut

How much would you pay to avoid learning that you have a transmissible disease? Certainly, a perfectly rational actor would never pay to avoid information, as unpleasant as it might be. Information can only ever be a net benefit helping us make informed decisions. However, two researchers from Robert Day School of Economics and Finance…

Invested in Community: CMHF

Guest Author: TC Carling, President, Canadian Men’s Health FoundationThe Canadian Men’s Health Foundation (CMHF) is a national, registered charity providing information, tools, and motivation for men and their families to live healthier. Canadian men are dying at an alarming rate from chronic illness and leaving their loved ones behind. Yet, 70 per cent of men’s health problems…

The Evolution of Alpha

The concept of alpha is the bedrock of financial markets. Without getting into the nuances of the active versus passive debate, investment managers aim to provide alpha to investors for which they charge a fee for their services. At its core, alpha is generally defined as excess return relative to a benchmark. The excess return can come from…

FOMC Gymnastics & the Potential for Another Policy Misstep

Back in February, I wrote an article called FOMC Gymnastics and a Potential Policy Misstep, which explored the likelihood that the FOMC (Federal Open Market Committee) could make a policy misstep that would have negative implications for asset prices. That piece explored five factors which made the current tightening cycle more difficult to interpret:An inflationary…

“Peeky” Blinders

When individuals have uncertainty about a specific product or idea, they will often look to what their peer group is doing to help them decide. Social proof is a behavioural bias that can lead to decision making errors. By embracing a process-driven research flow to guard against behavioural biases and data peeking, Viewpoint can distinguish between true and false alpha.

Plot Twist: Your Bond Portfolio May Be Riskier Than You Think

Government bonds are often referred to as risk-free or safe-haven assets, and, in the right context, this is a correct label as they are low volatility investments that represent money lent to a sovereign nation with almost no risk of default. However, in the first half of 2022, a diversified portfolio of global government bonds returned -13.3% in CAD terms. So, how do we reconcile an outcome like this with the near-risk-free or safe-haven aspect of the asset class?