Research + White Papers
Periodically, BakerAvenue's portfolio managers will share with investors a deeper knowledge of the economic factors that are influencing the securities markets around the world. It is our intention to provide you with objective analysis that can help you measure the market's constantly changing risk levels.
Why the Conventional Wisdom on Risk is Foolish
The conventional wisdom in finance defines “risk” as the uncertainty of future investment outcomes. In the popular book and staple of business school courses, A Random Walk Down Wall Street, Princeton professor Burton G. Malkiel argues that movements in asset prices are purely random. Malkiel recommends therefore, that investors should diversify and employ a passive “buy-and-hold” strategy since one cannot gain an advantage over
the market. Learn more…