Categories
English Portfolio Management

Lessons from the Yale Model for Private Investors

In contrast to the Yale model, a passive approach has produced the best returns over the past decade and is likely to remain the best investment strategy in the future for individual investors.

Categories
English Portfolio Management

What is the Yale investment model?

Like private investors over the last decade, the vast majority of institutional investors would have been better off managing their funds passively with negligible costs.

Categories
English Portfolio Management

Subjective investing with Black-Litterman

Instead of following blindly historical data, investors can integrate subjective views. This is mostly justified in case of market anomalies, but dangerous in panic situations.

Categories
English Portfolio Management

Factors for private investors

A factor approach can lead to excessive transaction costs, increasing liquidity risk or entering complex derivative transactions.

Categories
English Markets

Inflation, Interest Rates and Forex (Q2 2021)

Various forecasters have changed their view of the dollar and now expect a robust development rather than weakness due to a possible rise in interest rates.

Categories
English Portfolio Management

Factor investing: Theory

Factors are investment characteristics and investors expect premia through exposure to the corresponding risks

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English Guide

Active and passive management

Numerous studies have revealed that on average, the investor will lose his bets with the market. With passive investing, you invest in a collection of stocks representing the market.

Categories
English Portfolio Management

Ray Dalio’s balanced portfolio approach

Risk Parity aims at designing a long-term and robust portfolio with minimal maintenance

Categories
English Guide Portfolio Management

How to achieve asset diversification

Risky money should provide you with (erratic) growth and safe money will limit the overall short-term changes of your wealth

Categories
English Guide

How to define your investment risk

You cannot know the evolution of market prices. Nevertheless, you can decide in which types of assets, with different risks, you want to invest.