Adventurous people who love riding in the gondola of a hot-air balloon would naturally detest
plummeting to earth. Similarly, many investors have a pronounced tendency to channel …

By choosing investment strategies that intentionally create exposure to factor betas, investors
may be obtaining uncompensated risks. The authors show, across a wide variety of factors …

Ample high-quality research has identified three key factors operating in the global macro
context—carry, momentum, and value—that can be employed in systematic global investment …

A growing variety of alternative beta strategies have come to market in recent years. Many
of these strategies are purported to be “Smart Betas.” Are they? What makes them smart? …

The Fed has ceased its program of quantitative easing (QE) and may soon begin to raise
interest rates. Japan has embarked on an even more aggressive program of QE. The European …

… Chris Brightman … Chris Brightman … For interested readers, Chris Brightman discusses
this topic in more detail in the March 2020 All Asset All Access publication at pimco.com. …

“Gold-standard” cap-weighted indices have a buy-high and sell-low dynamic that causes a
structural long-term performance drag. Of course, relative to itself, no index can underperform…

Oliver Wendell Holmes’ 1858 poem “The Deacon’s Masterpiece” 1 describes a perfected
one-horse “shay,” a highly engineered carriage designed so that the failure of a single part …

2. The pros (proven profitability and robustness) of momentum can swiftly be wiped out by
the cons (crashes and crowded trades), making an active implementation dangerous for all …

Before its $50 billion bailout by the International Monetary Fund agreed to in June, Argentina
had raised short-term rates to 40%! In May, Turkey raised rates by 300 basis points (bps) as …