For decades, index investing was considered the “holy grail” of the financial community: safe, efficient, and low-cost. But the reality of recent years has shown that traditional index funds are no longer the only or best option. “Hedged portfolios” have proven to be more flexible, more resilient, and, in many cases, much more efficient than …
Tag: portfolio
“Black Swans” warn us of a strong Crash in the Stock markets in mid-autumn 2024
The evidence may point to a significant degree of parallelism between today and the conditions that caused the catastrophic crash of the Great Depression in 1929, and while trying to predict the exact timing of a recession is a challenging but also a relatively fool’s errand, taking steps to protect it’s a wise move. Will …
The Complex Securitization
Before analyzing the complex securitization, we must present what securitization is. Securitization follows a specific process where a financial institution (originator) designs a financial product by choosing to group different types of financial items from its balance sheet into a group. The financial institution then sells this group of financial assets to investors through the …