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Subject: CFA

Chartered Financial Analyst (CFA) is an international professional designation offered by CFA Institute (formerly known as AIMR) to financial analysts who complete a series of three examinations. To become a CFA Charterholder candidates must pass each of three six-hour exams, possess a bachelor’s degree (or equivalent, as assessed by CFA institute) and have 48 months of work experience in an investment decision-making position. CFA charterholders are also obligated to adhere to a strict Code of Ethics and Standards governing their professional conduct. (Wikipedia Jan 2010)

The investment profession:

A securities analyst’s greatest challenge

Lack of dedication has long been the bane of the security analyst.

The Crash of 2008 raised questions as to the competence of many who work in the profession of security analysis. There are dozens of schools providing professionals with training and certification in this field. However, know-how is not enough.

Commonsense and hard work can be more important than theoretical training and the ability to use the terminology.

This article discusses an endemic problem: Laziness.

Financial economic theory

CFAs reject the Efficient Market Hypothesis

On the road to Damascus ...

A recent poll of members of the British Chartered Financial Analyst Institute revealed that 77% of its members disagreed that investors acted rationally.

This implicit rejection of the Efficient Market Hypothesis has far reaching implications for the structure and management of capital markets, including Modern Portfolio Theory, the use of betas, the justification for index funds, and the M&M Theories.

Will the economists that proposed these theories return their Nobel prizes?

The Enron scandal

Jeff Skilling explains US corporate ethics

No right, no wrong compass

Unfortunately for society, Jeff Skilling of Enron told the truth according to tenets of moral relativism learned at the Harvard Business School and with McKinsey and Company, when, on being sentenced to decades in prison, he said, “That’s the way the game is played. You win some, you lose some.”

Skilling was a representative of corporate executives of his time. He did not work alone, nor was he an isolated ‘bad apple’.

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Featured articles on inside pages

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Is big bank complexity irreversible?

The root problem with big banks today is organizational and product line complexity. Excessive complexity in banks can be traced to the reorganization of Citibank in 1956, under Walter Wriston, following the advice of McKinsey and Company.
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US Politics

The decline of mainstream media

In September 2009, President Obama dominated television in his attempt to sell his government-run health plan, despite massive public opposition. Mainstream media has falling revenues and market share as people turn to unbiased sources. More ...

US equities

Do stocks offer protection against inflation?

There is a common belief that a managed, diversified portfolio of US common stocks provides protection against inflation. However, there is reason to question whether this protection currently exists.
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US Bonds

The collapse of the dollar and US bonds?

The extreme spending of the Obama government, combined with irresponsible bank lending policies promoted by Barney Frank and Chris Dodd, portend rising interest rates, the collapse of the bond market, and the end of dollar supremacy. More ...

World Economy

Signs of US losing its groove?

Thirty years ago, US income from abroad was more than double the amount of income that the US paid to the rest of the world. This year, or the next, this foreign income surplus may disappear forever. Is the US 'losing its groove'? More ...

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2010-08-25 16:03