The term ‘Smart Beta’ is being heard more and more in investment discussions these days. It’s not clear, however, what this actually means. One famous financial economist – Bill Sharpe (the winner of the Nobel prize for his work on the Capital Asset Pricing Model, or CAPM) – actually called it a complete misnomer. As
Strikes represent a breakdown in the symbiotic relationship between capital and labour. Each party needs each other, but they also have conflicting interest with regards to the surplus of their common endeavour. It is thus not surprising that they sometimes fight about what level and form of pay is acceptable. Normally, this bust-up is, or
A recent article in the Financial Times, by John Authers, has highlighted some key developments in the passive/active fund management debate. The article discusses the apparent contradiction that growth in the use of passive products, internationally, has stimulated the demand for active asset managers. One person Authers interviewed put the following perspective forward: “(w)hat I
2014 is now upon us and already furious debate rages over the “fragile five” and the effects of reduced global liquidity on the emerging markets. In this latest quarterly newsletter, we also evaluate the “New New Normal” and interest rate normalisation effects on the developing world, particularly South Africa. We have our regular International and
In the EU President José Manuel Barroso’s annual state of the union address this week in Strasbourg, he warned that political instability was now the biggest threat to Europe’s fitful recovery from the three-year-old Eurozone crisis. He stated that governments are still at risk of punishment from the financial markets if they veer from the
