Daily Archives: March 8, 2016

Estimating Return-Shortfall Risk For Portfolios

Failure isn’t an option, but it happens. Modeling the possibility that a portfolio strategy will stumble isn’t exactly cheery work, but it’s a productive and necessary exercise for stress testing what the future can do to the best-laid plans for investing. The good news is that there’s a rainbow of options for estimating the potential for trouble. But it’s usually best to start with a basic framework before venturing into more exotic realms.
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Initial Guidance | 8 March 2016

● Federal Reserve’s US employment yardstick sours in Feb | MarketWatch
● US Consumer Spending Up Slightly in Feb | Gallup
● Fed officials set battle lines on rate hikes ahead of FOMC meeting | Reuters
● While market debates commodities bottom, inflation warnings rise | CNBC
● China Exports Plunge In February | RTT
● Japan Q4 GDP Slump Revised Up Slightly; Spending Remains Weak | MNI