Office REITs at historical high discount : structural shift or market mispricing?
Since the end of the Covid-19 pandemic, office Real Estate companies have continued to struggle on the stock market. They are underperforming the Eurozone Real Estate index across all sectors.
Chart of the week: the unfair fight of stablecoins
The ECB has given stablecoins a place in its Financial Stability Review. In a report containing the term stability assessment, you would expect the focus to be mainly on risks, but even then the ECB’s approach is striking. The unapologetic desire to favor the traditional banking sector is more than telling.
Morningstar: Vanguard vs Dimensional in 60/40 funds
The classic 60/40 investment strategy is still alive and well, though its merits have been a matter of debate in recent years.
The Passive Paradox: how index funds distort the market and harm investors
For decades, we have embraced the rise of passive investing (hammock investing) as the ultimate democratization of the financial markets. The gospel of low costs, broad diversification, and market returns seemed infallible. But while passive assets under management have climbed to astronomical levels, a wave of critical academic research reveals a troubling paradox: the instrument designed to help investors may be structurally distorting the market and ultimately diminishing their wealth.
How Brussels regulated sustainability to death
It was a master plan. The Sustainable Finance Disclosure Regulation was supposed to send massive private capital flows into green investments, finance the Green Deal, and allow Europe to set an example for the rest of the world. Not a nonbinding directive, but an ambitious framework meant to discipline the financial sector and crush greenwashing.
Low purity can seriously hinder thematic investors
AI is going to change the world, but which companies will benefit most from that trend? Investors who put money into trends and themes such as AI look for a solid benchmark to determine the purity of their investments. The goal is high purity. That does not always work out.
Which infrastructure opportunities emerge from three simultaneous mega-trends?
In this video Ludovico Cappelli highlights three themes that are accelerating through the infrastructure space at the moment: Digitalisation, Decarbonisation and Deglobalisation.
Chart of the week: liquidity problems
Financial markets are under pressure. Not only stocks but also other asset classes are mostly moving lower. Are we dealing with unique factors, or is there a single overarching culprit?
PGIM: Verbeter uw inkomensstrategie met CLO's met een AAA-rating
Gezien de hoge rente, veranderende emissietrends en de groeiende wereldwijde vraag, vertellen Edwin Wilches, CFA, Gabriel Rivera en Connor Byrnes van PGIM hoe beleggers hun risicogecorrigeerde rendement kunnen verhogen via CLO's met een AAA-rating.
ESG is measured wrong, says Dan Ariely. His fix is beating the S&P500
Dan Ariely has devoted his career to understanding irrational behavior. According to the Duke University professor of psychology and behavioral economics, ESG investors are the perfect test group. They focus, he says, on what is easy to measure rather than on what actually matters for returns.