The ESG blind spot: AI’s social toll on global labor
As artificial intelligence takes over functions once handled by offshore teams, asset managers and their services firms face a new frontier, one that blends automation gains with urgent ESG questions.
The end of the Japanese miracle
The spectacular rally in Japanese equities appears to be over after many years of strong gains. Following years of underweight positioning, global investors have finally turned their attention to Japanese stocks, spurred by a recent aversion to U.S. equities—just as momentum is beginning to fade.
Chart of the week: under control
Under control. No, that title isn’t about Iranian airspace—although, with recent developments, an entire column could easily be dedicated to that as well. The title refers to the American consumer, who, despite all the uncertainty surrounding tariffs, has yet to throw in the towel.
The end of value investing?
The decline of value investing is not a recent phenomenon but a process that has been unfolding for over three decades. While many pinpoint its loss of effectiveness around 2007, Baruch Lev and Anup Srivastava demonstrate in their study that the strategy has in fact been structurally underperforming since the late 1980s. The key question is therefore: is value investing dead, or merely in a deep hibernation?
Outperforming bitcoin with bitcoin
The question of how best to incorporate bitcoin into an investment portfolio is becoming increasingly relevant. As the digital currency gains mainstream acceptance, investors grapple with the practical considerations: should you buy crypto directly, or opt for traditional financial instruments?
Chart of the week: reality check
European policymakers, economists, and politicians are in desperate need of a reality check—an awakening that brings them back down to earth and forces them to finally make effective, objective, and intelligent decisions. Something that has been missing for years.
The dollar: a currency of contradictory views—time for an update
Some analysts are talking about the end of dollar dominance. They primarily point to the erosion of international trust among trade partners and the high debt levels of the United States. A weakening appears to be on the horizon, they write.
The dollar remains king
The US dollar has experienced a spectacular decline in recent months. Investors call it a correction, analysts see a turning point, and pessimists even predict the end of dollar hegemony. But let’s pause for a moment. While the dollar is indeed falling rapidly, it is far from collapsing.
Chart of the week: the ECB is seeing stars
Economists have a knack for elevating seemingly simple assumptions into so-called science—even though economics isn’t really a science at all. Nevertheless, endless books are written about a single abstract interest rate number.
Return is a chosen illusion
At the heart of financial research lies a seemingly simple question: what is the risk-return profile of stocks and corporate bonds? New research based on the Belgian stock market from 1850 to 1913 shows that the answer changes fundamentally when illiquidity is taken into account.