Six Impossible Things Before Breakfast

From GMP’s recent White Paper: In order to make sense of today’s pricing, you need to believe in six impossible things: Secular stagnation is permanent and rates will stay low forever. As we have argued…

Technology Trends for 2017

ThoughtWorks: The theme for the latest edition of Technology Radar is Conversational UI and natural language processing. Conversation—a new way to interact with applications—took the ecosystem by storm with tools such as Siri, Cortana, and Allo,…

All About Factors & Smart Beta

This week’s commentary is a long-form presentation all about factor investing and smart beta.  We cover four topics. In the first section, we explore the basics of factors: what are they and where do they…

Sector Rotation and the Momentum Factor

Sector rotation is a popular investment strategy whereby managers actively reallocate capital from one investment sector to another based upon changing market conditions. There are many ways to run sector rotation strategy, including: business cycle…

Diversification in Multi-Factor Portfolios

The debate rages on over the application of valuation in factor-timing methods. Regardless, diversification remains a prudent recommendation. How to diversify multi-factor portfolios, however, remains up for debate. The ActiveBeta team at Goldman Sachs finds…