Clients want fund managers to take risks. But they don’t like what risk-taking looks like when it doesn’t work
this not a common feeling, but part of me is excited about the crash in stock prices. It is the part of me with a personal-account portfolio. I have long-term financial goals. I want to hold equity risk, even as others run from it. If I can buy streams of cash flows at lower prices, I am happy. But another part of me, the professional who invests on behalf of others, is anxious. I try to fuse these two selves. It is not easy.
Nobody knows how this pandemic will play out. Lots of people claim to know, of course. A few of them will be right, by luck or judgment. That’s a matter for the scientists and for economists, too. The biggest insight I have gleaned from economics is that asset prices are set at the margin. The stock price on the screen is the one at which the most desperate seller and the bravest buyer are willing to do business.
In the meantime, stock prices can keep falling. I understand why people are selling. A lot are forced to. They may have borrowed to buy stocks and had their loans called by nervy lenders. Fund managers that promised low volatility must cut their equity risk. But capitulation is more than this. It is the dumping of stocks that have already fallen a long way. Retail investors are prone to it.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Senators sold stocks before coronavirus sank the markets: what we knowSenators are facing backlash for selling in some cases millions of dollars in personal stocks shortly before the coronavirus pandemic sent markets into a freefall earlier this month.
続きを読む »
JPMorgan is paying its 'front line' employees $1,000JPMorgan is stepping up for its employees during the coronavirus pandemic, and will pay its front line employees a one-time bonus of $1,000.
続きを読む »
Markets gain as central banks, governments pour in cashGlobal shares gained some composure on Friday, marking the end of a week dominated by fears of a deep coronavirus-driven recession
続きを読む »
Exclusive: Kevin Hassett is returning to the White House to fight looming coronavirus recessionKevin Hassett is returning to the White House to advise President Trump through the severe economic fallout from the coronavirus outbreak, the former Trump official tells PoppyHarlowCNN.
続きを読む »
Stock market live updates: Stocks set to rise again, Nasdaq futures hit 'limit up'Stocks attempted to rise for the second day in a row on Friday.
続きを読む »
Markets lifted as central banks, governments pour in cashStock markets rebounded from some of their recent huge losses on Friday, pulling...
続きを読む »