Looking Ahead

Effective portfolio management in 2010 confronts important questions as the financial sector emerges from a near-death experience, and the rest of the global system navigates an unsettling set of lagged economic, institutional, and political reactions. In too many instances, traditional portfolio ma...

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Bibliographic Details
Published in:Journal of portfolio management 2010-01, Vol.36 (2), p.4
Main Author: El-Erian, Mohamed A
Format: Article
Language:English
Subjects:
Financial services
Portfolio management
Risk factors
Online Access:Get full text
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Summary:Effective portfolio management in 2010 confronts important questions as the financial sector emerges from a near-death experience, and the rest of the global system navigates an unsettling set of lagged economic, institutional, and political reactions. In too many instances, traditional portfolio management is facing disrupted core/peripheral relationships, parameters becoming variables, and sequential dynamics yielding to simultaneous ones. It is not immediately obvious how best to model a simultaneous fiscal shock, which, at its heart, impacts the basic conceptualization of the AAA benchmarks. Neither is it straightforward to model the provision of global public goods during a transition involving a near-term weakening of the core of the global system and a longer-term journey from uni- to multi-polarity.
ISSN:0095-4918
2168-8656