…government shutdown and concomitant fight, how stable is this budget allocation over time? Is it possible that the economists (including Krugman and David Cutler) were right all along, albeit with…
…both G and P are less than one. The allocation of income between G and P depends on the marginal rate of substitution, that is, on the marginal utility of…
…how to rationally evaluate – become rent seeking. This is a massive misallocation of resources, diverting capital from real investment into totally non-value-added financial tail chasing. And I’m not the…
…into equities as portfolio managers chase performance in to year-end. While many investors (including your truly) have expressed their dislike for the Fed’s liquidity induced “recovery” JP Morgan sees no…
…into a single all-purpose portfolio. Allocation to stocks and bonds is automatically rebalanced over time, and the fund is supposed to ratchet down risk gradually as retirement nears. Target-date funds…
…developing economies to open their borders to capital flows that would increase investment and achieve a more efficient allocation of savings (see Chapter 5 here). IMF officials proposed an amendment…
…tradable goods in advanced economies, particularly manufacturing, falls during the periods of capital inflows. A reallocation of investment out of manufacturing occurs, including a reallocation of employment if a government…
…a Masters in Advanced Finance, Capital Allocation, etc. who spent much of his career on factory floors fixing and maximizing throughput globally. I admit, there are those who know more…
…volatile commodity markets. These two channels can reinforce each other. Restrictions in trade, for example, could discourage cross-border investments. Geopolitical affinities affect cross-border capital allocation, and the evidence reported in…
A couple of days ago, James Bianco, chez Ritholtz, noted a WSJ article entitled “Dividend Stocks Become the Heroes”: This year, the 100 stocks in the Standard & Poor’s 500-stock…