2019-07-29 11:33:00 Mon ET
stock market competition macrofinance stock return s&p 500 financial crisis financial deregulation bank oligarchy systemic risk asset market stabilization asset price fluctuations regulation capital financial stability dodd-frank
Blackrock asset research director Andrew Ang shares his economic insights into fundamental factors for global asset management. As Ang indicates in an interview with Ritholtz Wealth Management, fundamental factor investors seek to manage macroeconomic risk to enhance their average returns. Ang focuses on 5 primary factors: size, value, momentum, low volatility, and high quality of profit margins. In addition, Ang oversees a broad basket of assets such as stocks, bonds, currencies, and commodities.
The consistent application of both big data and technology helps scale total assets under management with lower transaction costs. At BlackRock, Ang decomposes his favorite fundamental factors across macro and style factors. The 3 major macro factors are *economic growth, inflation, and the real interest rate*, in accordance with the baseline Taylor interest rate that depicts a highly non-linear Phillips curve. Ang empirically finds that these 3 macroeconomic factors account for 85% of stock market returns. Stock portfolio analysis helps achieve higher average returns (after risk and fee adjustments) when the active fund manager focuses on size, value, momentum, low volatility, and corporate profitability. Moreover, value occasionally becomes more cost-effective relative to its own history, and key momentum returns often cluster together in specific time periods. This factor investment methodology accords with our proprietary alpha investment model that relies on 6 fundamental factors (size, value, momentum, asset growth, operating profitability, and market risk exposure).
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-07-15 16:37:00 Monday ET

President of US-China Business Council Craig Allen states that a trade deal should be within reach if Trump and Xi show courage at G20. A landmark trade agr
2019-06-15 10:28:00 Saturday ET

The Sino-American trade war may slash global GDP by $600 billion. If the Trump administration imposes tariffs on all the Chinese imports and China retaliate
2017-06-03 05:35:00 Saturday ET

Fundamental value investors, who intend to manage their stock portfolios like Warren Buffett and Peter Lynch, now find it more difficult to ferret out indiv
2019-03-13 12:35:00 Wednesday ET

Uber seeks an IPO in close competition with its rideshare rival Lyft and other tech firms such as Slack, Pinterest, and Palantir. Uber expects to complete o
2018-05-21 07:39:00 Monday ET

Dodd-Frank rollback raises the asset threshold for systemically important financial institutions (SIFIs) from $50 billion to $250 billion. This legislative
2018-05-29 11:40:00 Tuesday ET

America and China, the modern world's most powerful nations may stumble into a **Thucydides trap** that Harvard professor and political scientist Graham