Understanding Fat Tail Returns
Much statistical analysis in finance depends on the assumption that variables have normal distributions. This assumption is far from correct. As a result, as Nassim Nicholas Taleb has rightly pointed out, most statistical results in finance are wrong. Now, a disciple of Taleb has tried to extend Taleb’s research by relating it to an obscure mathematical concept.
Financial Professionals Guide to Estate Planning
Let’s face it, estate planning tends to be boring, time-consuming, and complex. And with the current estate tax exclusion, some financial professionals feel estate planning impacts fewer and fewer people. Truth be told, estate planning isn’t just for the wealthy – it impacts every client you have. This presentation and the accompanying materials are designed to provide you with fundamental knowledge of must-know estate planning concepts.
Don’t Let Your Clients’ Kids be the Next Reddit Victims
There are times when you are called to advocacy. As a profession, this is one of them. Advisors are the stewards, the informed, the protectors, and if there is a force that stands between the next generation of investors and financial devastation, it is you.
Are Equity Return Forecasts Too Pessimistic?
Investment managers produce annual equity return forecasts, and the consensus is much more pessimistic than that of academics. I’ll take a closer look at why the forecasts are so different and the implications for advisors working with clients.
Minisode - Overcoming the Diversity Challenge in the Advisory Profession
It doesn’t take Black History Month to remind our listeners of the lack of diversity in the advisory profession. Of the countless conferences I’ve attended – when it was possible to attend such conferences – the overwhelming majority of attendees were like me: white, male and middle aged. We’ve seen a number of efforts to address this lack of diversity, particularly in the last year in light of the tragic events that have particularly affected people of color. Here to talk with me today is someone at the forefront of those efforts within the advisory profession.
Lessons for Advisors from the GameStop Saga
Over the last two weeks, we have seen how a cadre of retail traders on Reddit can lay siege on a group of hedge funds that had shorted the stock of the retail company GameStop. We saw the price of GameStop rise from about $20 at the beginning of the year to a peak of $347.5 on January 27. Yesterday, on February 4, it closed at $53.50. This is a brick-and-mortar company that sells video games and lost about $20 million last year. Today we will explore deeper issues surrounding the GameStop saga.