If economics commentators did not abound around home, one would certainly need them. But in case you are one of the luckiest living in a remote area and miss your favorite finance & economics wizard, here’s a link - sadly only in Italian, though – delivering right to your newest flat
Life is hard when it comes to forecast future returns. How much expected earnings growth accounts for relative performance? Based on data by Factset about Stoxx 600 securities as of November 30, 2013, picking the top 115 12-month performers vs. the index and comparing them with the top 115 securities in
To whoever conveyed recently his or her doubts – during a seminar – about how ‘in practice things look differently in comparison with how simple you’ve put them in theory’ expressing hesitation about the conclusions on the dividend yield-price earnings ratio relationship, I’d like to draw his or her attention
The ECB’s recent last call to public finance austerity and reform rigor has been relayed by its last Financial Stability Review update on November 27. Though admittedly austerity has been and still is a short-term recessive drag on the mostly stressed peripheral euro economies, it remains an important factor to be
Excel offers simplicity via convenience: yield to maturity and internal rate of return are at hand on such ubiquitous tool. During the preparation of our mostly sought-after e-learning training sessions for the EFPA certificate, at eXponential we have realized how bewildered financial advisors are sometimes at dealing with Excel for
The Black-Litterman (BL) model considers explicitly that investors do express their own views about risky asset returns by collectively holding the market portfolio according to their market capitalizations. An active investment manager aiming at beating the market often implements her own views tilting the portfolio weights towards over or under performing assets according to rules
Lately, I have had to explain what Babcock duration is. Further to saying it’s an alternative gauge of duration to Macaulay it simply is a weighted average of two factors [1]: (maturity) and The outright formula [2], the weighted average, is: . There’s a zero coupon with n years of
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Rodolfo Vanzini
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