Financial Website

Just a great article from PIMCO: Black Monday Revisited: Lessons From 29 Years of Market History | PIMCO Blog: "It was 29 years ago this month that world equity markets experienced a meltdown that became known as Black Monday (or Black Tuesday in Asian time zones). On 19 October, the Dow Jones Industrial Average plunged 23%, its largest-ever one-day percentage decline. As equity and bond

Research: Index Funds Are Fueling Out-of-Whack CEO Pay Packages:  "We found that when firms in an industry are more commonly owned, top managers receive pay packages that are much less performance-sensitive. In other words, these managers are rewarded less for outperforming their competitors. This difference in compensation has a sizeable effect. In industries with little common ownership,

Shaking Up Boards Would Help Keep Corporations Honest - Hartford Courant: While a somewhat extreme view, there is much truth in this.  Read the whole article not just this reading-bite:  "Where do such directors come from? In U.S. companies they are typically chosen by shareholders, but in a system so rigged that it may be the closest Western analog to a Soviet election. The incumbent directors

99% of actively managed US equity funds underperform: Surprised only by the 99%, I expected closer to 95-97%....wow... "Amin Rajan, chief executive of Create Research, the consultancy, said: “These numbers are scary. Active managers need a root and branch look at their investment processes to retain their relevance in today’s surreal investment landscape.” According to the analysis, 99 per cent

NYU professor explains how to value tech stocks: "Paint the technology sector with the same brush at your own peril, warns a finance professor. "Older technology companies are behaving very different from the younger technology companies," said Aswath Damodaran, professor of finance at the Stern School of Business at New York Univer" 'via Blog this'