Description: Investment Fallacies: The "Dollar Bill" Fallacy

Description: From a session at the annual meeting of the Society of Actuaries held in Chicago, Illinois, October 15-18, 2000 Discussion of purposes and approaches for creating interest-rate scenarios.

Description: The investment risk generated by a stochastic interest rate is recognized as often the greatest risk associated with a whole life or retirement policy. Recent research has investigated the mathematics of this risk when the interest rate follows a stochastic process and the time to death is considered to be random. In this paper we focus on the use of the zero coupon bond as an investment instrument to fund a whole life policy. It is unlikely that a company will entirely fund a particular single policy with a zero coupon bond.

Description: Investment Fallacies: The Fallacy of the Fed Model

Description: Invest Fallacies: Active management overall performs different than passive management

Description: Is Risk/Return a sound tool for decision-making? No. It is not consistent, not objective, distorts decision and degrades governance. Why? What shall we do then?

Description: Readers are given an introduction to a PBA Implementation Guide for Life Products.

Description: Investment Fallacies: The Misconceptions of Retirement Risks

Description: Investment Fallacies: The Fable of the Storyteller and the Market

Description: The impact of Fed’s QE program on the financial markets has been enormous and profound. The tapering and the eventual removal of the stimulus will be equally enormous and profound, and may be disruptive. To adapt to the potential regime change in near future, some investment strategies have been proposed: (1) shorten duration to focus on the short end of the yield curve and create laddered portfolios; (2) reduce allocation to high yield bonds; (3) rotate out interest rate sensitive sectors such as utilities; and (4) use interest rate derivatives to hedge the interest rate uncertainties lying ahead. On the other hand, contrarians who see the QE program continuing may stay the course and consider (1) adding duration, (2) gaining exposure to high yield bonds, and (3) increasing allocation to utilities and telecoms.