Insights · Markets
In-depth analysis of market events and macro developments from the Viewpoint team.
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
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
High-frequency trading firms were thrust into the public spotlight when Michael Lewis published his book Flash Boys in 2014. The arc of the book was that proprietary trading firms had invested heavily in technological infrastructure to increase the speed by which they received financial market tradi
Katy Milkman authored a book that was published in 2021 titled “How to Change – the Science of Getting from Where You Are to Where You Want to Be.” Milkman is a behavioural scientist and a professor at the Wharton School of the University of Pennsylvania and specializes in change management. In the
In Chinese mythology, the white dragon symbolizes death and rebirth. This analogy seems applicable for foreign investors in Chinese equity markets this year. The recent rout in Chinese equity markets has come as a shock to many market participants, especially considering the downdraft in risk is iso
The question of whether inflation is transitory (or is facing a structural shift higher) continues to dominate the narrative in financial markets. Alarm bells are sounding that a hyperinflationary environment is unavoidable and right around the corner, given that the “base-effects” have rolled off t
Innovation in the financial services industry happens frequently. While innovation is generally good for investors, conflicts of interest can and do arise, and if left unchecked, they can end up being detrimental to investors. One area where conflicts of interest are being brought to light are with
Many have heard the ancient Greek myth of Icarus, the boy who was granted the gift of flight by his father who crafted wings out of wax and feathers in order for the duo to escape the labyrinth to which they were confined. Icarus’s father had only one warning for his son and that was […]
In a previous blog post by Viewpoint Investment Partners, Volatility, A Skewed Reality, Amin Haji, Manager, Research & Analytics, explored the probability of specific wealth targets being achieved over a 20-year period when comparing investments with similar annual returns but differing volatilities
The International Monetary Fund (IMF) released their bi-annual Fiscal Monitor Report earlier this month, which drew a lot of attention. Governments are increasingly relying on fiscal stimulus measures to keep their economies afloat in various stages of lockdown while trying to battle the COVID-19 pa
Imagine that you are a clinical physician recommending a promising new drug that has been shown to reduce the risk of heart attack in at-risk patients. At the end of the year, you ask one of your attending physicians to build an Excel sheet breaking down the efficacy of the drug in your patients. Yo
Environmental, social, and governance (ESG) metrics for publicly traded companies has become one of the fastest growing movements in the investment management industry. The expectation is that companies who implement strong ESG metrics will become more profitable and valuable over time by improving