President Obama to Young African Leaders: The President holds a town hall with young leaders from more than 40 countries across Africa. For those interested in Africa and its development, or for that matter this President's engagement with not just heads of state, but with people all over the world, the video is well worth watching for info on America's diplomatic progress see our fact sheet as well.
Fifty Years from Now What will the best-practice portfolios of our children and grandchildren look like? What rules will they operate under? Put another way, which of our beliefs and intermediations will they retain, and which will they look back on as quaint and outmoded?
Only a few things are certain: First, human nature will not change.
There will always be bubbles and panics; valuations will go to extremes in both directions. Second, risk and return will continue to be joined at the hip.
But our models and vehicles will likely not look anything like those we have today. If the evolution of financial intermediation occurs at even half the pace of the past fifty years, open-end mutual funds and ETFs will occupy only a small and musty corner of the financial landscape, much as closed-end funds do now.
Financial theory will also evolve. The three- and four-factor models will likely give way to better ones.
And yet the gap between theory and practice will remain as wide as ever. During a recent CFA Institute conference, the brilliant Robert Merton, at the conclusion of a talk on the use of quantitative risk-management techniques and derivatives, was asked if his experience at Long Term Capital Management had taught him any lessons.
I have not spoken about it publicly. If there were some new theory of finance that was discovered because of the LTCM event, however, I surely would have relayed it to everyone a long time ago.
Were we able to resurrect Karl Marx, he might just as well have responded that the events of had not changed political theory. So, one more eternal verity: No matter how elegant the theory, no matter how rigorous the analysis, from time to time things will go totally off the rails.
Further, most of the time this will happen in a novel way. Those who take history seriously will need no fancy models to survive; those who rely instead on black boxes should at least factor in a very, very fat tail.
Equity should continue to offer higher returns than debt, for the simple reason that stocks, because they own only the residual claim on revenues, are inherently riskier.
This is not to say that from time to time their valuations will fail to reflect this, as occurred in the late s. Diversification will become even more important than it is now. First, as markets grow ever more integrated, asset-class behavior tends to become ever more correlated.
Although this lessens the value of diversification, it is overwhelmed by two factors that favor it: Finally, there are the imponderables. Will, for example, small U. Over the past few decades, it has become apparent to even the most enthusiastic proponents of private accounts that most plan participants are about as qualified to manage their retirement portfolios as they are to do brain surgery or play left wing for the Rangers.
Some autonomy needs to be stripped from them by mandating default opt-ins, lifecycle funds, annuitization, and so forth. Would it not be better simply to throw in the towel, throw out Wall Street, and establish a national pension system?
Most Europeans, when they gaze upon our retirement system and our health care system as welllaugh themselves silly.The future is coming faster than we think. and 50 years from now, in it will be interesting to look back I'm sure have a chuckle at how backwards we were then (now), and how different the.
What might the world look like in 50 years? Here’s what some leading minds think. 1.
The world population will be over 9 billion. Disease will be more common, as everybody will be physically closer to everyone else, and chronic food shortages may be the norm (although this has been debated). 50 Years From Now, What Will Life Be Like for Millennials?
A Prudential study finds that millennials think the old assumptions about education, work and retirement no longer apply for them. The economy continues its nine-year expansion, with an unemployment rate now at percent, the lowest since , according to data released Friday by the Department of Labor.
However, the. 50 years ago—November 22, —NBC aired an otherwise-forgettable Star Trek episode with an unforgettable moment. Captain James Kirk and Lieutenant Uhura, under mind-control by aliens in a.
This is, of course, very hard to predict, given that no one 50 years ago would likely have been able to predict the state of the family in the US today.