By now most of market participants are aware of the ubiquitous front running going on in the markets. Michael Lewis detailed only some of its aspects in its excellent Flash Boys. Here is some amazing investigative work that uncovered that frontrunning is now almost literally Star
An article in the Journal of Derivatives, published by Institutional Investor Journals, has been named the winner of the 2015 Peter L. Bernstein Award. Risk Estimation and Hedging: A Reverse Stress Testing Approach - written by Yaacov Kopeliovich, Arcady Novosyolov, Daniel Satchkov and Barry Schachter
According to the recent Blackrock Investor Pulse Survey, we are in a retirement crisis and advisors who work with pre-retirees are on the front lines. Investors are generally pessimistic about investing. The survey indicates that 72% of Americans do not see financial markets as a
Are you confused about the Fed’s actions? Weren’t they supposed to hike rates in early 2015, then late 2015, now mid-2016 or maybe not at all? What is the logic behind this constant flip flopping? What does it mean for your teams? We attempted to answer
RiXtrema is now integrated with Morningstar OfficeSM, Morningstar’s practice and portfolio management system for financial advisors. Now, dual clients of RiXtrema and Morningstar will be able to pull any account or portfolio directly into Portfolio Crash Testing. RiXtrema’s Portfolio Crash Testing 2.0 monitors both the
As advisors are adopting wealth management technology, they seem to be focused on the risk tolerance aspect of risk system implementation. But building a portfolio by subordinating everything else to the risk tolerance is detrimental. Portfolio creation in this case becomes similar to silly car
Increases in junk credit spreads have historically been predictive of the stock market moves, especially after a prolonged period of very low spreads. And so today, the junk debt market is in serious trouble with contagion spreading. If your clients own high yield, make sure
How can an Advisor differentiate from competition in this volatile market? Study after study shows that the first thing that prospects and clients care about is capital preservation. Investors are worried about risk! Last quarter was the first time since 2008 that both stock and bond
The «investor revolt» continues. According to Investment Company Institute, US equity funds have outflows of $17.5 billion in August on top of the $28.58 billion in July. These are very serious numbers. Overall, investors have pulled $50.3 billion out of US equity mutual funds in
AUM growth of first-generation robo-advisors dramatically slowed in light of market volatility, yet statements by robo advisors deny this fact, straining credibility. Financial Planning magazine published the deep dive into this issue with our supporting analysis: http://www.financial-planning.com/blogs/why-i-am-not-convinced-about-volatility-and-robos-2694230-1.html