Investing amid Volatility: A Resource Guide
by Ron Rimkus, CFA, via CFA Institute
The first few weeks of 2016 have produced the worst start to a year for US equity markets ever recorded.
The US Federal Reserve recently began the process of unwinding its extraordinary support measures for the markets, which had been in place since the financial crisis in 2008. The Fed raised the target federal funds rate by 25 basis points (bps) and now world markets are in a tizzy. Japan, China, and Europe are struggling and itâs not clear that the United States has the economic strength to emerge unscathed.
Itâs only natural to be worried. But whatâs an investor to do? Has the game changed? Will my portfolio get crushed? Am I doing right by my clients? So many questions.
In response, we have assembled a list of articles, presentations. and observations that we hope are timely and helpful in light of the present market turmoil.
- âTips on How to Manage Money in a Bear Marketâ: Jason Voss, CFA, gives seasoned advice on what to look for and what to do in a falling market.
- âHistorical Perspective: How Todayâs US Stock Market Stacks Up against Past Bull Marketsâ: David Larrabee, CFA, reviews the length and magnitude of past bull markets and compares then to the post-2008 bull market.
- âThe Ruble Crisis: Where Oil Goes, the Ruble Followsâ: In this piece, I demonstrate the similarities and differences between the Russia of 1998 and the Russia of today.
- âDiverging Markets and Shades of 2007â: James A. Bianco makes the case that the economy is not ready for a rate hike. (CFA Institute Conference Proceedings Quarterly)
- âGlobal Economic Outlook: Opportunities and Challenges for MENA Investorsâ:Â Nouriel Roubini shares his perspective on the global economy. (CFA Institute Conference Proceedings Quarterly)
- âFinancial Market History Roundtable, Bostonâ:Â CFA Institute convened a blue-ribbon panel to examine the lessons of financial history and how investors might make money from those lessons. Here is a synopsis of the various insights. (CFA Institute Conference Proceedings Quarterly)
- âHouse of Debtâ: The venerable Amir Sufi explains the underlying structural problems in the US economy. (CFA Institute Conference Proceedings Quarterly)
- âEnduring Principles of Value Investingâ: Legendary value investor Charles Brandes, CFA, describes his chance encounter with Ben Graham and the lessons he accrued over a lifetime of investing. (CFA Institute Conference Proceedings Quarterly)
- âAsset Allocation Implications of the Global Volatility Premiumâ: Authors William Fallon, James Park, and Danny Yu demonstrate that shorting volatility can be a lucrative enterprise. (Financial Analysts Journal)
- âThe Crash Risks of Style Investing: Can They Be Internationally Diversifiedâ: The authors demonstrate that international diversification can reduce the crash risks of size and value, but not momentum. (Financial Analysts Journal)
- âThe G-Zero Worldâ: Ian Bremmer says that investors must brace for dramatic geopolitical disorder. (CFA Institute Magazine)
- âThe Effects of FX!â: Ronald G. Layard-Liesching spells out his thesis that quantitative easing (QE) has distorted the risk premia for risk assets globally and that foreign exchange (FX) markets have become the worldâs most important market.
If you liked this post, donât forget to subscribe to the Enterprising Investor.
All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the authorâs employer.
Image credit: ©iStockphoto.com/FrankRamspott
This post was originally published at CFA Institute's Enterprising Investor
Copyright © CFA Institute
