ESG Investing
December 21, 2020
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Christopher Palazzolo
Lukasz Pomorski
Alice Zhao
We discuss how an investment portfolio could dramatically reduce its carbon footprint, potentially even achieving a ‘net zero’ carbon footprint. We discuss the pros and cons of techniques to achieve carbon reduction goals, including security selection, shorting high carbon footprint companies, and trading instruments such as carbon offsets and carbon permits.
Macroeconomics
December 18, 2020
2020 is almost over, but it has left many questions unanswered. This week, I’ll answer eleven of them in a not-so-fond farewell to the year. It will be forecast-free. If you want forecasts you can go to any news site or turn on any TV channel. Or wait in line anywhere. Happy New Year!
Macroeconomics
December 4, 2020
Market analysis is often based on comparisons with past economic cycles. This week, we look at why we should be cautious in drawing analogies to previous recessions and recoveries.
Macroeconomics
November 20, 2020
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Jonathan Fader
Zachary T. Mees
Michael A. Mendelson
In the second paper of our “Bonds Today” series, we review the popular belief that bond yields are too close to zero to fall much further and then explain why we disagree.
Asset Allocation
November 20, 2020
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Michael A. Mendelson
Zachary T. Mees
What role do bonds play in a portfolio today? We explain why it all depends on investors’ ability to own them in a capital efficient way.
Macroeconomics
November 13, 2020
This week we look at why the market’s reaction to the election results didn’t go according to the consensus script.
Macroeconomics
October 30, 2020
It’s good to vote, just not with your portfolio. This week’s Wrap-Up looks at why elections are so difficult to trade.
ESG Investing
October 29, 2020
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Stefano Giglio
Bryan T. Kelly
Johannes Stroebel
The paper reviews the literature studying interactions between climate change and financial markets, including various approaches to incorporating climate risk in macro-finance models as well as the empirical literature that explores the pricing of climate risks across several asset classes.
Macroeconomics
October 16, 2020
What do investors want in an equity index? This week we look at what a couple of countries in Asia tell about what’s been driving relative returns.
Macroeconomics
October 2, 2020
This week we answer all of the questions you asked about inflation and some you didn’t ask.