In my new paper on asset allocation I go into quite a bit of detail about why certain asset classes generate the returns they do. Understanding this is useful when thinking in a macro sense and trying to gauge why financial assets perform in certain ways in both the short-term and the long-term. One of the more common misconceptions I see in the financial space is that credit traders are smarter than equity traders. This is usually presented with charts showing how credit “leads” equity performance or something like that. One of the more egregious offenders of this is a chart that has been going ... READ MORE
