Business

The diversity of strategies people use is truly remarkable, I saw people using completely different strategies to the degree that if I had set out to invent 15 different strategies for a fictional work…. I couldn't have made the strategies more different to the ones I saw in real life! This illustrates a point I have made in all my works insofar as there really is no 'holy grail' or single style that is most effective.

Author of Market Wizards & Hedge Fund Expert

It's a matter of finding an approach that works for the individual. A person has to know whether they are comfortable with fundamental or technical, long term or short term, certain types of markets, wider risk or less risk… You can go through a whole checklist of things and find it's different for each individual.

Author of Market Wizards & Hedge Fund Expert

The reality is we live in a very dynamic world that's full of risks and all we should really care about are risk drivers – both financial and non-financial. Alternatives may provide us with ways of hedging out or managing future risks better.

If somebody told me the US stock market returned 12% per annum over the last 50 years, I would simply ask them what the returns were over the last 150 years, 250 years, 10 years and so on. I could make up any return I want just by picking the appropriate time period.

None of this is new. The Romans traded forward contracts in commodities 2000 years ago; a Dutch fugitive, Isaac le Maire, conducted the first ever bear attack on a stock in 1610, leading also to the first ever regulatory ban on short-selling that same year.

The notion of 'alternative' as an asset class sits badly with me because for me, saying hedge-funds – as an example – are an asset class is akin to comparing mutual-funds to being an asset class. The sheer diversity within these groups makes it difficult to define them as a class in their own right, given the complete lack of commonalities across the board.

We believe that by being open, honest and transparent with communities- they are more likely to protect, respect and patronise our projects. Our primary responsibility is to make money for our investors. That however, is not mutually exclusive to making positive change.

I typically think impact investing, on the whole, can generate better risk-adjusted yields than the alternatives.

You may have gone to the best business school in the world and learned that the three most important things in real estate are location, location, location- but it's just not true! It's relationship, relationship, relationship.

If one wants to treat societal problems, then philanthropy and government spending are fine. If one wants to cure societal problems, one has got to come up with sustainable solutions- and that means attracting for-profit capital.

I have not been an urban investor in re-gentrification, which tries to change the character of a community and, candidly, is very speculative. Instead I look at revitalisation, which constitutes investing in existing densely populated and ethnically diverse communities and delivering the goods and services that are sought after but not provided.

The way to think about informational asymmetry is market by market. If you're in a supermarket buying lettuce, there are potential informational asymmetries. Someone may have used a bad fertiliser… even a toxic one… and you wouldn't know it staring at a piece of lettuce.

Nobel Prize-winning economist; Stanford provost and NYU president

Global investors were awash in cash due to current account surpluses in emerging economies and easy monetary policies. Investors from emerging economies first invested their rapidly rising wealth in risk-free Treasuries, but once they had their fill of Treasuries they looked for higher yield in what they thought was the next safest thing, U.S. residential mortgages.

Chief Economist of Moody's Analytics & Economic Forecaster

They should be stress-testing their balance sheets and portfolios under a range of negative scenarios, and have sufficient capital and liquidity to withstand scenarios that are far out on the tail of the distribution of possible outcomes. The stress tests should account for potential bubbles in global asset markets.

Chief Economist of Moody's Analytics & Economic Forecaster

Most fundamentally, the subprime bubble was created by- a surfeit of global liquidity due to large current account surpluses in China and other emerging economies and easy global monetary policies; a flawed private mortgage securitization process that funnelled the liquidity into poorly underwritten mortgage and other loans; and weak regulatory oversight that failed to catch and rectify the problems in the securitization process.

Chief Economist of Moody's Analytics & Economic Forecaster

As soon as such actions are taken, I think a lot of entrepreneurs will see Greece as being the right place to invest.

Professor of Economics specializing in network economics and digital markets