Is the Endowment Model a Good Investment Strategy?

Laurence Articles

4 articles from The Journal of Investing are included in this PDF: COMMENTARY: Problems with the Endowment Model by Richard M. Ennis COMMENTARY: The Endowment Model Is Just Active Management by Laurence B. Siegel REBUTTAL: The Endowment Model Defense That Wasn’t by Richard M. Ennis REBUTTAL: The Market Portfolio Is Bigger Than You Think by Laurence B. Siegel

The Asset Allocator: Economic Optimist Larry Siegel Doubts The Doomsayers

Laurence Articles

May 11, 2021 7:00 AM ET CLICK ON RADIO TO HEAR PODCAST Summary “Fewer, Richer, Greener,” by Laurence B. Siegel, director of research for the CFA Institute Research Foundation, offers a relentlessly optimistic take on the future. In this interview, Siegel cites messenger RNA and the blockchain revolution as contemporary examples of innovation in a real economy he thinks will …

Michael Lewis on the Unlikely Trio That Defeated the Pandemic

Laurence Articles

The saga of local public health officials tasked with fighting epidemic disease, and their clashes with national health authorities who didn’t care, was a perfect recipe for putting readers to sleep. But Michael Lewis made it into high drama. I couldn’t put it down. That’s about the worst opening for a book review that I can think of, but I …

Financial Folly, Religious Frenzy and the Delusions of Crowds

Laurence Articles

What do financial folly and religious frenzy have in common? This question has not been carefully explored since Charles Mackay’s spectacular 1852 study, Extraordinary Popular Delusions and the Madness of Crowds. But, in a recent book, William Bernstein, a well-known economic historian, neurologist, and investment manager, makes the connection even more strongly than Mackay did. The title of his book, …

Don’t Give Up the Ship: The Future of the Endowment Model

Laurence Articles

Endowment funds have long been thought to be the best-managed asset pools in the institutional investment world, employing the most capable people and allocating assets to managers, conventional and alternative, who can and do truly focus on the long run? But, after a decade of subpar performance, documented by Richard Ennis in this issue of the JOURNAL OF PORTFOLIO MANAGEMENT, …

Will Demographic Trends Drive Higher Inflation and Interest Rates?

Laurence Articles

Powerful demographic trends will cause higher inflation and interest rates, and a reduction in inequality as labor reclaims its bargaining power in the global economy, argue two British authors in a persuasive book. That conclusion “caused a furor” when it came from the celebrated British economist and central banker Charles Goodhart, and Manoj Pradhan, a macroeconomist. It is the central …

Conversations with Frank Fabozzi

Laurence Articles

Conversations with Frank Fabozzi is a fortnightly series of interviews with leading investment thinkers and practitioners conducted by Frank J. Fabozzi, editor of The Journal of Portfolio Management and a prominent Yale professor and author. Conducted in an informal and personal manner, Frank discusses what lessons his interviewees have learned from their experiences in the financial markets and any key …

Financial Folly, Religious Frenzy and the Delusions of Crowds

Laurence Articles

What do financial folly and religious frenzy have in common? This question has not been carefully explored since Charles Mackay’s spectacular 1852 study, Extraordinary Popular Delusions and the Madness of Crowds. But, in a recent book, William Bernstein, a well-known economic historian, neurologist, and investment manager, makes the connection even more strongly than Mackay. The title of his book, The …

Michael Lewis on the Unlikely Trio That Defeated the Pandemic

Laurence Articles

The saga of local public health officials tasked with fighting epidemic disease, and their clashes with national health authorities who didn’t care, was a perfect recipe for putting readers to sleep. But Michael Lewis made it into high drama. I couldn’t put it down. That’s about the worst opening for a book review that I can think of, but I …

Twenty Rules for Life: Morgan Housel’s Antidote to Financial Chaos

Laurence Articles

In a fascinating little book, The Psychology of Money, the investment manager Morgan Housel provides more useful self-help advice than most authors who explicitly set out to do so. My title and subtitle are a takeoff on Jordan Peterson’s wildly successful book, 12 Rules for Life: An Antidote to Chaos, a mostly abstract work of philosophy that nevertheless counsels such …

Uncovering the Mystery Behind Innovation

Laurence Articles

Ever wonder why Americans enjoy a substantially higher standard of living than any other large country? According to Matt Ridley, it is because the liberal democracy we have nurtured over the last 250 years is the essential catalyst to foster innovation. Our high standard of living is the result of economic growth. The economy grows not just through putting more …

Living with Risk: The COVID-19 Iceberg

Laurence Articles

Sooner or later, the threat of the novel coronavirus epidemic will fade. The virus will not be eradicated, but we will adapt and learn how to live with the risk of SARS-nCoV-2infection. (The virus will also adapt, something very much on the minds of researchers and public health officials.) Our parents, grandparents, and ancestors lived with the risk of polio, …

The Future of Liberal Democracy

Laurence Articles

Americans enjoy the economic prosperity and freedoms of its liberal democracy. But our elevated stature is threatened. As the U.S. recoils from the world, the era of U.S. dominance appears to be ending. That is an essential takeaway from Richard Haass’ modestly titled new book, The World: A Brief Introduction. If investors and their advisors, or ordinary citizens, want to …

Uncovering the Mystery Behind Innovation

Laurence Articles

Ever wonder why Americans enjoy a substantially higher standard of living than any other large country? According to Matt Ridley, it is because the liberal democracy we have nurtured over the last 250 years is the essential catalyst to foster innovation. Our high standard of living is the result of economic growth. The economy grows not just through putting more …

The 19th Century Called and Wants Its Trade Policy Back

Laurence Articles

Commentators of many stripes, and politicians ranging from Donald Trump to Bernie Sanders, have derided the persistent U.S. trade deficit — particularly with China — as a waste of capital leaving our country. The view that the U.S. would benefit by correcting this imbalance is taken up in a new book, with a message that should concern all financial market …

The Wile E. Coyote Economy

Laurence Articles

“U.S. GDP will contract 30% in second quarter,” blared an April 8 headline in Reuters Business News, apparently intended to sow as much panic as possible. In the Great Depression, real GDP shrank by about 27% from the 1929 top to the 1933 bottom, so the Reuters headline heralds what amounts to the worst news in American history, if it’s …