Description: The Social Security System faces a funding crunch some 30 years in the future. Democrats and Republicans agree on the funding problem and that investing in the stock market can help fill the gap. But both views cannot be right.

Description: Is the New CPI Different? The article discusses the changes made to the CPI, whether it is an accurate measure of inflation and the implications for pension plans.

Description: The second of three articles exploring the new technology offered by Santa Fe, New Mexico-based Assuratech, Inc. Describes the development of the applied complex adaptive systems technology behind Assuratech’s highly sophisticated program that uses simulation and data mining techniques for accurate, reliable versatile risk modeling.

Description: A primer on Credit Default Swaps

Description: This article discusses the use of financial economics in managing pension plans and warns of issues with rapid change in this area.

Description: This chairperson’s corner will address many of the upcoming challenges for the Investment Section, how it might affect you, and how we will call upon you to help. There are a number of changes going on at the SOA, many that I am sure you are aware of. Specifically, the roles for the SOA sections are broadening to include many of the roles and responsibilities that used to reside in the practice areas. While there are some activities and functions that are still being developed further, many of our roles are now very clear. From Risks and Rewards Newsletter, August 2005, Issue No. 47.

Description: This article shows a different form of the Black-Scholes formula for European calls and puts under risk-neutral assumptions, that permits a comfortable verbal interpretation. The derivation of this alternative form appears at the end of the article.

Description: This article examines trends of the stock market beginning with Dow theory - market prices tend to trend either upwards, a bull trend, or downwards, a bear trend. It discusses the many trading rules based on diverse patterns in the price series since the time of Dow including strictly filter rules.

Description: “Investments in securities are traditionally evaluated on a standalone basis by using ratios that summarize the relation¬ship between anticipated risks and rewards. These ratios could also be used to better quantify the relationship between the standalone risks and rewards of life and annuity products and thus enhance the capital allocation process. These ratios will be discussed and critiqued.” The article describes how “the . . . ratios can help tie modeled product risks to modeled rewards.”

Description: This article explores the market volatility of 2008, and addresses the following question: “was the market behaving inefficiently as appeared to be the case in 2008, or was there something truly rational going on, which for most people was hard to see?”