Knowledge Centre Archive
Knowledge Centre Archive
The Knowledge Center is your source for perspectives on industry challenges and opportunities affecting you and your clients. Below are materials from SEI's Investment Management Unit. For industry-specific thought leadership, please visit the following sections:
Vice President and Senior Portfolio Manager, Equities Team, Investment Management Unit
New Year: Off to a Rocky StartJan192016Article
The New Year got off to a rocky start as investors digested falling equity markets, further declines in the price of oil, heightened concerns over China’s economic stability and rising geopolitical tensions. The widely expected “January effect" on risk assets seems to be skipping markets this year. In our view, this recent market activity reflects several long-term market transitions that we expect to play out across the globe in 2016 and beyond.
More on that Uncertainty We MentionedJan152016Article
The current volatility is unsettling to say the least, we remain positioned for the latter stages of a U.S. equity-market expansion and sees opportunity for long-term investors.
Fourth Quarter Market CommentaryJan132016Article
The fourth quarter saw an escalation in geopolitical strains, deepened distress in the oil patch and long-anticipated follow through by the U.S. FOMC.
More of the Same in 2016, with a Little Less CertaintyJan82016Article
The more things change, the more they stay the same. As investors enter 2016, they are facing as many uncertainties as last year — perhaps more. Despite that, we will give risk assets the benefit of the doubt until central banks begin to pursue tighter money policies that raise interest rates to much higher levels.
Volatility Heightens: Third Quarter 2015 Market CommentaryOct62015Article
The third quarter was marked by heightened volatility and a spate of interventions by the Chinese government. Fixed-income market performance was mixed, with wide performance dispersion between “safe-haven” and risk assets.
Do Something! Volatility and the Urge to Take ActionSep212015Article
Despite the recent market activity, knee-jerk reactions and wholesale portfolio changes are often poor choices.
Canadian Equities: The Good, the Bad...the Opportunity?Aug312015Article
Global equities are correcting, but Canadian equities have already corrected and are now outperforming.
China Sneezed. Will the Rest of the World Catch a Cold?Aug252015Article
Turmoil is revealing a mixed outlook for global growth pockets of strength and weakness in emerging markets.
Commodity-producing economies and those with close ties to China are struggling.
Investors Remain in a Whirlwind: July Market CommentaryAug192015Article
The whirlwind was centered primarily on mainland Chinese equity-market volatility, the shutdown of the Greek banking system as the latest stage of the country’s debt crisis culminated in a new bailout, and concerns over a municipal-debt default in Puerto Rico.
Reaping the Whirlwind: Second Quarter Economic OutlookJul172015Article
In our current environment, we expect the global economy to gain traction, which should provide a tailwind to equity markets, even in those countries further along in their business cycles and facing rising interest-rates.
Subdued Central Bank Activity Notable During Second QuarterJul102015Article
Investors were caught up in a whirlwind this quarter, which included both volatility and surprising countertrend movements—ranging from German bunds to Chinese equities, currencies to the price of oil
Major Central Banks are Accommodative for Longer: May 2015 Monthly CommentaryJun152015Article
"Accommodative for longer” appeared to be the consensus policy among major central banks in May.
Major Central Banks Hold Their Bearings: April Monthly Market CommentaryMay82015Article
Major central banks held their bearings amid tight elections in the U.K., debt-crisis brinksmanship in the eurozone, weak first-quarter economic growth in the U.S., and disinflation in Japan. Equity and fixed-income markets generally performed well as risk assets benefitted from favourable conditions.
Investment Fundamentals: Oil Price BenchmarksApr302015Article
A steady decline in crude oil prices began in the summer of 2014, bringing the Brent and WTI oil benchmarks to the forefront of daily news. The current oversupply of oil has caused prices on both benchmarks to fall by about 50 percent.
Behavioural Finance: Controlled Thinking and NeuroeconomicsApr102015Article
Many investors have made mistakes, and later asked themselves, “What was I thinking?” Behavioural research suggests we should also consider "how" we were thinking. Neuroeconomics seeks to understand the financial mind.
Diversification: The Perils of NearsightednessMar122015Article
Regardless of an investor’s level of risk tolerance, we will not allow short-term historical performance to fool us into abandoning our philosophy of diversification.
Behavioural Finance: Confirmation Bias, Cognitive Dissonance, and RecencyFeb272015Article
In this segment of our Behavioural Finance series, we will examine confirmation bias, cognitive dissonance and recency, additional behaviors that may lead us to make investment mistakes.
Investment Fundamentals: DiversificationFeb132015Article
They say variety is the spice of life. But when it comes to investing, variety can be a key to long-term success. But just what does diversification mean? And why might it be beneficial?
Behavioural Finance: Optimism and OverconfidenceJan52015Article
In this next installment, we discuss K&T’s research of human decision-making processes which are distorted by inherent biases toward optimism and overconfidence. These subjective perceptions, when present to a significant degree in the financial decision-making process, can result in miscalculating the value of an opportunity.
Behavioural Finance: Loss and Regret AversionSep252014Article
Here we address loss aversion - a behavioural phenomenon central to the development of Kahneman and Tversky’s Prospect Theory - and regret aversion, which drives investors to make inferior decisions through passive behaviour.
Behavioral Finance: The Three A's - Availability, Anchoring, and AdjustmentAug302014Article
In our last paper, we explored the biases inherent to heuristics. Now we explore availability, anchoring, and adjustment - shortcuts that are rooted in investor's inclination to project their current frame of reference on situations that are not applicable.
Behavioural Finance: Rules of Thumb and RepresentativenessJul162014Article
In Behavioural Finance: An Introduction to Human Error, we noted that Kahneman and Tversky were smart academics who found many ideas for their social science experiments in the mistakes that they themselves made as well as the mistakes that their intelligent colleagues and subjects made. Kahneman and Tversky noted some rules of thumb that often lead investors astray.