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Private Equity Indices Based on Secondary Market Transactions

November 12, 2018 Bilal 0

Private Equity Indices Based on Secondary Market Transactions https://ift.tt/2qvstRO Private Equity Indices Based on Secondary Market Transactions NBER Working Paper No. 25207 Issued in November 2018 NBER Program(s):Asset Pricing, Corporate Finance Measuring the performance of private equity investments (buyout and venture) has historically only been possible over long horizons because the IRR on a fund is only observable following the fund’s final distribution. We propose a new approach to evaluating performance using actual prices paid for limited partner shares of funds in secondary markets. We construct indices of buyout and venture capital performance using a proprietary database of secondary market […]

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The Fed – A Wealthless Recovery? Asset Ownership and the Uneven Recovery from the Great Recession

September 19, 2018 Bilal 0

The Fed – A Wealthless Recovery? Asset Ownership and the Uneven Recovery from the Great Recession https://ift.tt/2x8cAED September 13, 2018 A Wealthless Recovery? Asset Ownership and the Uneven Recovery from the Great Recession Lisa Dettling, Joanne Hsu and Elizabeth Llanes Aggregate measures of household wealth have broadly followed the business cycle. Between 2007 and 2009, American households as a whole lost 20 percent of their wealth.1 Household wealth increased during the economic recovery from its nadir in the Great Recession, and by late 2012, aggregate household net worth surpassed its previous 2007 peak, and continued to grow through 2016. These […]

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Which Companies Have The Highest Gross Profit Per Employee?

September 3, 2018 Bilal 0

Which Companies Have The Highest Gross Profit Per Employee? https://ift.tt/2C8aHNf Submitted by Priceonomics The Standard & Poor’s 500 Index, “S&P 500” includes the 500 largest American companies by market value listed on the NYSE or NASDAQ stock exchanges. In 2017, the S&P 500 index number increased by 22% from 2016-2017. S&P 500 companies generated $11 trillion in combined revenue and employed more than 25 million people worldwide. As a follow up to the report we published previously (What Industry Has The Highest Revenue Per Employee?), we ranked the companies by Gross Profit Per Employee (GPPE), exploring how efficiently they leverage […]

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Tech booms

September 2, 2018 Bilal 0

Tech booms https://ift.tt/2osIsPL The big boom in tech is never what the pundits say it will be. They generally go for the wizzy demo, but what wins is usually more cerebral and prosaic, has more to do with human potential than domination. Like the cameras in phones. Few pundits called that. It wasn’t spacy and hard to understand. Instead cameras got smaller, better, and key thing — could communicate without tethering. Few predicted that radio was ripe to be democratized, but that’s what we did. Not VR or AR. Imagine how much money has poured into those. New media types […]

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Monetary Policy and the Stock Market: Time-Series Evidence (2016)

September 2, 2018 Bilal 0

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2748290 Abstract We construct a slope factor from changes in federal funds futures of different horizons. Slope predicts stock returns at the weekly frequency: faster monetary policy easing positively predicts excess returns. Investors can achieve increases in weekly Sharpe ratios of 20% conditioning on the slope factor. The tone of speeches by the FOMC chair correlates with the slope factor. Slope predicts changes in future interest rates and forecast revisions of professional forecasters. Our findings show that the path of future interest rates matters for asset prices, and monetary policy affects asset prices throughout the year and not only at […]

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FEDS 2018-058: Oil, Equities, and the Zero Lower Bound

September 2, 2018 Bilal 0

FEDS 2018-058: Oil, Equities, and the Zero Lower Bound https://ift.tt/2OGYbpC FEDS 2018-062 August 2018 Abstract: The Phillips curve has been much flatter in the past twenty years than in the preceding decades. We consider two hypotheses. One is that prices at the microeconomic level are stickier than they used to be—in the context of the canonical Calvo model, firms are adjusting prices less often. The other is that the expectations of firms and households about future inflation are now less well informed by macroeconomic conditions; because expectations are important in the setting of current-period prices, inflation is therefore less sensitive […]

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U.S. Bear & Bull Markets Since 1926

September 2, 2018 Bilal 0

U.S. Bear & Bull Markets Since 1926 https://ift.tt/2vO5dl4 ‘);//–> } U.S. Bear & Bull Markets Since 1926 August 17, 2018 9:00am by Barry Ritholtz click for ginormous graphic Source: First Trust   I really like this graphic, via First Trust, showing the history of bull and bear markets in the US. The ongoing debate about the length of bull and bear markets — is this the longest bull market ever? — never seems to be resolved — I have a different question to ask . . . More on this later today.   Previously: History of U.S. Bear & Bull […]

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Predictable movements in asset prices around FOMC meetings

September 2, 2018 Bilal 0

Predictable movements in asset prices around FOMC meetings https://ift.tt/2C1y8Yu The real effects of monetary policy are still heavily debated because monetary policy affects real quantities, such as employment or GDP growth, with a delay. For this reason, to understand the transmission mechanisms of monetary policy, researchers have studied the response of financial markets in narrow windows around monetary policy actions.  Monetary policy has large and immediate effects on stock markets. Bernanke and Kuttner (2005) show that a contractionary monetary policy shock of 25 basis points created a drop in broad stock indices of more than 1 percentage point within minutes […]

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Stocks, Bonds and Causality

September 2, 2018 Bilal 0

Stocks, Bonds and Causality https://ift.tt/2LPBUE7 Past performance is not a guarantee or a reliable indicator of future results.  All investments contain risk and may lose value.  Investing in the bond market is subject to risks, including market, interest rate, issuer, credit, inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions […]

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Divergent – the breakdown of stock market correlations, temp or perm?

August 31, 2018 Bilal 0

Macro Letter – No 101 – 31-08-2018 Divergent – the breakdown of stock market correlations, temp or perm? Emerging market stocks have stabilised, helped by the strength of US equities Rising emerging market bond yields are beginning to attract investor attention US tariffs and domestic tax cuts support US economic growth US$ strength is dampening US inflation, doing the work of the Federal Reserve To begin delving into the recent out-performance of the US stock market relative to its international peers, we need to reflect on the global fiscal and monetary response to the last crisis. Source: Divergent – the […]