Low Debt Companies Fare Better in High Interest Rate Times

Portfolio manager Andrew West, CFA, explains how selecting companies with strong balance sheets and low debt safeguards against the potential erosion of the value when interest rates are elevated.

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Can a Raw Deal Be Good for Netflix?

Did Netflix just put a headlock on the entertainment industry? On January 23, the company announced a US$5 billion deal to stream the professional wresting show Raw and other programs from World Wrestling Entertainment, expanding into live sports programming (the recent sexual-assault allegations against WWE founder Vince McMahon, which led to his resignation from the board of WWE’s parent company, appear unlikely to derail the partnership).

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Japan Digging Out of Chronic Deflation One IT Worker at a Time

In Japan, it’s common for an employee to work for the same company for their entire career. Indeed, lifetime employment has been a central feature of the nation’s economy since World War II, and with such limited job mobility, nominal wages haven’t grown for three decades.

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4 Sources of Edge for Active Managers

People are deeply flawed when it comes to making investment decisions. It is vital for active investment managers to be aware of their own behavioral defects as humans and counter these shortcomings with process. Good active managers must be able to identify their “sources of edge,” the characteristics that enable them to generate sustainable alpha.