Portfolio turnover is a crucial feature of large institutional investment decisions, but as it is relatively unimportant to retail investors it is often overlooked. In reality, large investors must create sophisticated models to understand how portfolio turnover impacts not only their returns, but also their perception to outside investors.
Inflation has a very precise and easy-to-understand definition, yet it is hotly debated and often misunderstood. Why is this? What exactly is inflation, and how is it so often misunderstood?
Charts are a powerful tool–they look authoritative, data-driven, and objective. But even using good, real data, charts can very easily paint a very different picture. Knowing how charts are used and, more importantly, what the fundamental data behind the charts means, is crucial to interpreting reports and data.
Simple common-sense based investing sounds really good, but it often works badly. In many cases, the obvious investment is not the best, and the best investment isn’t just not obvious but downright absurd. Why does counterintuitive investing work?
Now JPMorgan executives are insisting 72-hour workweeks are necessary for young analysts, who need 12-hour days 6 days a week to become masters of investment banking. But what does it mean to be a master of investment banking, and why will 72-hour weeks help get you there? Or will it?
More and more bankers are being summoned back to the office as work from home ends on Wall Street. Why is this happening? Is work from home dying? And are bankers happy about this?