Risk parity – the idea that risk, measured by volatility, should be allocated equally across the major asset classes – has been one of the major investment fads of the last 5 years.
The philosophical premise of risk parity is that correlation is more predictable than return.
The most common… Read the article
Deafening noise has surrounded the recent episode in emerging markets. Can it really be the case that the secular growth story was a myth, and the BRICs are now broken? Economies which spent the last 15 years building foreign exchange reserves to insure against balance of payments crises are nonetheless… Read the article