Practical Application最新文献_第10页

Practical Applications of Diversification Benefits, Where Art Thou? 多元化收益的实际应用，你在哪里?

Practical Application Pub Date : 2020-06-17 DOI: 10.3905/pa.8.2.388

S. Pittman, Amneet Singh, S. Srinivasan

{"title":"Practical Applications of Diversification Benefits, Where Art Thou?","authors":"S. Pittman, Amneet Singh, S. Srinivasan","doi":"10.3905/pa.8.2.388","DOIUrl":"https://doi.org/10.3905/pa.8.2.388","url":null,"abstract":"Practical Applications Summary In Diversification Benefits, Where Art Thou?, in the Winter 2019 edition of The Journal of Wealth Management, authors Sam Pittman, Amneet Singh, and Sangeetha Srinivasan, all of Russell Investments, consider how diversification may improve risk-adjusted returns (RARs) and what asset sectors may deliver those benefits. The authors examine whether exposure to some asset classes neutralizes the benefits from holding other asset classes, and how the returns from naive diversification match up to those from other approaches. Prompted by increasing investor skepticism over the advantages of diversification, the authors construct optimal fixed-weight portfolios with volatilities equal to those of three US-centric benchmark portfolios. They consider the historical benefits from diversifying into international equities, real assets, and below-investment-grade bonds. The authors draw from 15 different asset classes, to discern the regularity and magnitude of RAR improvement from diversification over five-year holding periods. They find that certain asset classes deliver diversification benefits more reliably than others; that some asset classes’ diversification benefits are dampened by the presence of other asset classes; and that portfolio returns from diversified holdings are subject to cyclicality that has longer wavelengths than the US business cycle. History implies the benefits of diversification will return, the authors note. TOPICS: Wealth management, retirement, portfolio construction","PeriodicalId":179835,"journal":{"name":"Practical Application","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127901288","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Practical Applications of The Role of ABS CDOs in the Financial Crisis ABS cdo在金融危机中的实际应用

Practical Application Pub Date : 2020-06-10 DOI: 10.3905/pa.8.2.387

Larry Cordell, G. Feldberg, Danielle Sass

{"title":"Practical Applications of The Role of ABS CDOs in the Financial Crisis","authors":"Larry Cordell, G. Feldberg, Danielle Sass","doi":"10.3905/pa.8.2.387","DOIUrl":"https://doi.org/10.3905/pa.8.2.387","url":null,"abstract":"Practical Applications Summary In The Role of ABS CDOs in the Financial Crisis from the Summer 2019 issue of The Journal of Structured Finance, authors Larry Cordell (of the Federal Reserve Bank of Philadelphia), Greg Feldberg (of Yale University), and Danielle Sass (of the University of Illinois at Urbana-Champaign) explain how investment pools called asset-backed security collateralized debt obligations (ABS CDOs) became increasingly risky in the mid-2000s. The securities produced total writedowns of $410 billion, of which $325 billion were borne by AAA and super-senior securities. The first ABS CDOs ever issued were invested in a well-diversified mix of securities. But between 2005 and 2007, newly issued ABS CDOs were backed primarily by subordinate classes of MBSs backed by nonprime mortgage loans and derivatives of those MBSs. Financial firms believed these undiversified ABS CDOs were ultra-safe, but incurred massive losses when the subprime mortgage market collapsed. The authors explain the reasons for this false sense of security and the huge losses. They say a primary catalyst of the financial crisis was the enormous leverage that regulators had let firms build up, leaving them in danger of insolvency when their ABS CDOs failed. The authors then examine whether the industry has learned any lessons. TOPICS: Asset-backed securities (ABS), credit risk management, financial crises and financial market history","PeriodicalId":179835,"journal":{"name":"Practical Application","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117200050","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Practical Applications of Multifamily Development: Can You Always Lease It Up? 多户住宅开发的实际应用:你总能租出去吗?

Practical Application Pub Date : 2020-06-03 DOI: 10.3905/pa.8.2.386

Mark Fitzgerald, Chenchao Zang, Willard Mcintosh

引用次数: 0

Practical Applications of Medicare and Tax Planning for Higher-Income Households 高收入家庭医疗保险和税收筹划的实际应用

Practical Application Pub Date : 2020-05-06 DOI: 10.3905/pa.8.1.382

William R Reichenstein, W. Meyer

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引用次数: 0

Practical Applications of How Much Is Behavioral Advice Worth? 行为建议价值多少的实际应用?

Practical Application Pub Date : 2020-04-29 DOI: 10.3905/pa.8.1.381

Michael M. Pompian

{"title":"Practical Applications of How Much Is Behavioral Advice Worth?","authors":"Michael M. Pompian","doi":"10.3905/pa.8.1.381","DOIUrl":"https://doi.org/10.3905/pa.8.1.381","url":null,"abstract":"Practical Applications Summary In How Much Is Behavioral Advice Worth? in the Fall 2019 edition of The Journal of Wealth Management, Michael Pompian of Sunpointe Investments, LLC, quantitatively analyzes behavioral mistakes by investors through a case study of an affluent family that commits two common ones: loss aversion and mental accounting. The author explains how such fundamentally irrational behavior, often driven by fear and the temptation to limit losses by selling during sudden market downturns, can be detrimental to overall long-term returns. Behavioral finance—the study of how psychology affects investors, analysts, and the overall market—has gained relatively widespread acceptance over the past 20 years. Yet many investors and advisers remain vulnerable to psychological pitfalls and may be uninformed about how wealth management strategies might incorporate behavioral advice. Pompian uses his case study to emphasize the importance of recognizing psychological biases and to illustrate how they can drive mistakes that reduce investment returns. He asserts that advisers who understand behavioral finance can help investors, especially wealthier ones with more complex investment needs, avoid needless risk.","PeriodicalId":179835,"journal":{"name":"Practical Application","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122570961","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Practical Applications of The Price/Earnings Ratio, Growth, and Interest Rates: The Smartest BET 市盈率、增长率和利率的实际应用:最聪明的赌注

Practical Application Pub Date : 2020-04-22 DOI: 10.3905/pa.8.1.380

Preston W. Estep

{"title":"Practical Applications of The Price/Earnings Ratio, Growth, and Interest Rates: The Smartest BET","authors":"Preston W. Estep","doi":"10.3905/pa.8.1.380","DOIUrl":"https://doi.org/10.3905/pa.8.1.380","url":null,"abstract":"Practical Applications Summary In The Price/Earnings Ratio, Growth, and Interest Rates: The Smartest BET, from the September 2019 edition of The Journal of Portfolio Management, Preston Estep of Battenkill LLC proposes a more elastic and encompassing break-even time (BET) metric as an alternative to the price/earnings (P/E) ratio for measuring investment value. The author defines BET as the number of years it takes for a company’s earnings to add up to its current stock price. Unlike the P/E ratio, his BET formula explicitly estimates future growth and discounted future earnings. According to the author, the resulting BET metric is superior to P/E and P/E-to-growth rate (PEG) ratios, in that BET allows for valuation comparisons of stocks with profoundly different growth rates and investor expectations. In advocating for his BET, the author calls into question some of the conventional wisdom about the relationship between yields and stock returns. His empirical analysis finds mostly random correlations in the relationships between valuation measures, including BET, and observed stock returns. But his findings support the need for stock valuations to include an assessment of a firm’s growth prospects—something he asserts the BET metric can readily do.","PeriodicalId":179835,"journal":{"name":"Practical Application","volume":"254 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114650369","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Practical Applications of The Unrealistic Optimism That Threatens Retirement Security 威胁退休保障的不切实际乐观主义的实际应用

Practical Application Pub Date : 2020-04-15 DOI: 10.3905/pa.8.1.379

A. Rappaport

{"title":"Practical Applications of The Unrealistic Optimism That Threatens Retirement Security","authors":"A. Rappaport","doi":"10.3905/pa.8.1.379","DOIUrl":"https://doi.org/10.3905/pa.8.1.379","url":null,"abstract":"Practical Applications Summary In The Unrealistic Optimism That Threatens Retirement Security, from the Fall 2019 issue of The Journal of Retirement, author Alfred Rappaport of Northwestern University details the retirement crisis facing Americans today. Fewer employers are offering lifetime pensions, and nearly half of American families have no retirement savings—but most Americans believe they are on track to a comfortable retirement. This unrealistic optimism comes from the fact that Americans underestimate their expenses in retirement while overestimating how much their investments will grow once they start saving. Investors often assume they will realize high rates of return in line with historical growth rates. However, they often sabotage their retirement nest egg’s potential by failing to reinvest dividends, and by investing when the market is high and selling when the market is low. Investors also often fail to factor in investment fees, inflation, and taxes. The author gives investors a reality check, providing tools that show how these factors cut into retirement savings over time. Financial advisors can use these tools to educate their clients and create retirement savings plans that are free of unrealistic optimism.","PeriodicalId":179835,"journal":{"name":"Practical Application","volume":"55 4","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114121804","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Practical Applications of Crowded Trades: Implications for Sector Rotation and Factor Timing 拥挤交易的实际应用:对部门轮换和因素时机的影响

Practical Application Pub Date : 2020-04-08 DOI: 10.3905/pa.8.1.378

W. Kinlaw, M. Kritzman, D. Turkington

{"title":"Practical Applications of Crowded Trades: Implications for Sector Rotation and Factor Timing","authors":"W. Kinlaw, M. Kritzman, D. Turkington","doi":"10.3905/pa.8.1.378","DOIUrl":"https://doi.org/10.3905/pa.8.1.378","url":null,"abstract":"Practical Applications Summary In Crowded Trades: Implications for Sector Rotation and Factor Timing, in the July 2019 edition of The Journal of Portfolio Management, authors William Kinlaw and David Turkington of State Street Associates and Mark Kritzman of Windham Capital Management discuss how investors can locate investment bubbles, determine whether these are expanding or deflating, and most profitably manage their exposure to bubbles’ run-ups and sell-offs. The authors propose two measures: (1) asset centrality to identify crowded trades (often the harbinger of bubbles) and (2) a complementary relative-value metric to distinguish between centrality during a bubble’s expansion and its deflation. Applied together, these measures can identify expansions and retractions of sector and factor market bubbles, the authors assert, to the advantage of investors wanting to trade these events. The authors back test the effectiveness of their measures by studying how they behaved during the tech and financial bubbles, among others. The authors conclude that, over the past 30 years, investors could have outperformed several equity markets by applying a sector-rotation strategy jointly incorporating these two measures, and also could have outperformed selected markets by using these measures to time exposure to such factors as size and volatility.","PeriodicalId":179835,"journal":{"name":"Practical Application","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129093209","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 1

Practical Applications of Active Indexing with ETFs: Disruption and Implications 主动指数与etf的实际应用:干扰与启示

Practical Application Pub Date : 2020-04-01 DOI: 10.3905/pa.8.1.377

Joanne M. Hill

{"title":"Practical Applications of Active Indexing with ETFs: Disruption and Implications","authors":"Joanne M. Hill","doi":"10.3905/pa.8.1.377","DOIUrl":"https://doi.org/10.3905/pa.8.1.377","url":null,"abstract":"Practical Applications Summary In Active Indexing with ETFs: Disruption and Implications, from the Summer 2019 issue of The Journal of Index Investing, Joanne M. Hill of CboeVest discusses how exchange-traded funds (ETFs) have revolutionized the asset management, trading, and exchange businesses, and how investment professionals should respond. According to Hill, the proliferation, transparency, and cost/performance benefit of ETFs give investors greater choice, ease, and value. But at the same time, their wide availability and use of quantitative rules-based strategies are disrupting traditional asset management. Hill asserts that the strong relative performance of ETFs is causing investors to increasingly eschew traditional discretionary money management based on qualitative stock selection. Additionally, index firms—which provide the benchmarks for ETFs—are gaining influence in the development and marketing of investment products. Hill argues that the move toward rules-based, smart-beta investing means active management via ETF indexing will become more common as a trading strategy and in portfolio management, presenting a challenge to asset managers and financial markets. She advises ETF sponsors to apply new approaches to the content, marketing, and distribution of their products, and to train their sales forces to capably inform customers about all aspects of ETFs.","PeriodicalId":179835,"journal":{"name":"Practical Application","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128838936","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Practical Applications of Utilizing Low-Volatility Assets to Mitigate Sequence Risk in Retirement Investing 利用低波动性资产降低序列风险在退休投资中的实际应用

Practical Application Pub Date : 2020-03-25 DOI: 10.3905/pa.8.1.376

Weili Ge

引用次数: 0