Well, not yet, but after the financial crisis of 2008/09 one must take a long hard look at the use of the famous Markowitz Efficient Frontier and Modern Portfolio Theory (MPT). At Strategic Asset Alliance, we already do that by using the efficient frontier to suggest possible ‘efficient’ (highest return for given risk) portfolios, but.
In last night’s article from Bloomberg, “Apollo-to-Goldman Embracing Insurers Spurs State Concerns,” the relatively recent involvement of private equity (PE) firms in insurers was noted as a potential problem for policyholders and regulators going forward. Let’s just say that this understates the problem. First, let’s remember how PE operates: Find inefficiencies and take full advantage.
OK, guys. Enough is enough. Every major developed country central bank is printing money like a 1920s gangster with a printing press in the basement and too much ink. But, what does that money printing really do for the economies of the developed countries? So far, very little except find its way into risk assets.
Will interest rates continue their meek rise, aided and abetted by QE tapering at the Fed? Or, will they fall reflecting the lack of inflation, a sluggish economy and continued QE at the Fed? These and other questions may be answered when the Fed meets this week to discuss the Final Countdown. By the Final.