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Is it true that for MSCI methodology, near 70% of the World is USA?
I queried the ChatGPT about MSCI World Index, for its investment thesis, institutional mandate alignment, trade offs, risks, potential enhancements etc. As of Jan 25, 2023 the iShares MSCI World ETF had around USD 2.7 billion allocated to the Index. The near 70% concentration to one country [U.S.] and 30% to the other 22 developed countries is…
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How Passive MCAP Investing method is harmful to your wealth!
Abstract Most Index Funds and ETFs are driven by an underlying Index. Most Indexing companies uses the Market Capitalization [MCAP] Method which has history going back to 1871. The Index funds and ETF industry have seen fast growth because Active Investing underperforms the Passive MCAP based Indexes. The feature below explains that though the MCAP…
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ChatGPT helping me win a Nobel Prize in Economics – I
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The Conscious Web
The Conscious Web The web is becoming conscious, even if you don’t see it yet. Soon it will help you automate more of your day-to-day life and bring more intelligence into everything it does. How you consume information is going to change forever. When Tim Berner Lee wrote about the Semantic Web in Scientific American…
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AlphaBlock’s Competitive Landscape
We published this Cartesian competitive landscape in the AlphaBlock Pitch Deck to define what is happening in the investment management industry, where it is heading, and how to understand future innovation. Our thesis, is based on the fact that the Indexing companies offer concentrated non-diversified solutions, wrapped up by ETF (Exchange Traded Funds) companies into…
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What If?
The last ‘What If?’ 2020 reluctant forecast thought through some scenarios in the future. “We are $277 trillion in global debt, near 0% in interest rate, behind a 10-year bull market, and peak madness prepared. We are in a historic time and as they say, fortune prefers the prepared mind.” What If? November 29, 2020…
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My Q&A with ChatGPT
My first interaction with ChatGPT creates a lot of hope for the future. However, a lot more needs to be done before we can teach machines to assimilate knowledge. I spent time on the playground asking the following 30 questions. Though initially answers seemed a lot coherent, it did not take me much time to trip the…
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BRICs, storytelling, and dispersion mechanisms
Dreaming BRICs was a Goldman Sachs paper released on 1 October 2003, which popularized the term BRIC [Brazil, Russia, India, China] with a macroeconomic investment thesis. The authors speculated a spectacular growth of the emerging block. Revisiting the feature one can see that the last 19 years have not worked out well for the forecast.…
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S&P’s Oil Bias
S&P’s flawed indexing methodology spills over risk into the commodities markets. If you are an investor seeking commodities exposure because you understand that an inflationary world means allocation to commodities, you are in for a big surprise. Out of the $153 trillion total global assets, only $18 trillion represent alternative asset classes like PE, Real…
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S&P’s Google Paradox
Concentration over Representation Standard Statistics Co & Poor’s Publishing Co merger back in 1941 had a lot to do with the American Railroad Journal managed by Varnum Poor. The merger increased the number of the list of stocks to 490. This was a significant jump and leapfrogged the merged entity into the top spot among…