Myron Scholes On Time provides insight into the thinking of Nobel Laureate in Economic Sciences and Janus Henderson’s Chief Investment Strategist, Myron Scholes. Aimed at sophisticated investors, and those who wish to be sophisticated investors, these episodes provide a fresh, and at times controversial, take on foundational investment principles through the lens of the dynamics of time.
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In the first episode of the series, Myron explores time diversification and its importance in effecting investment outcomes. Myron, in conversation with Phil Maymin, explains why targeting a specific level of risk over time is equally, if not more important, than cross-sectional diversification.
Understanding and building trust
Myron explores how data mining, clustering and reverse engineering of models could create pitfalls for investment managers. Myron, in conversation with Phil Maymin, highlights the importance of building trust in the investment management industry by presenting valid, trustworthy information and cautions investors to not rely on past performance alone.
Conundrums of risk management
Myron tackles some of the toughest conundrums in risk management: when to de-risk, when to re-risk, and how to think about risk in a real, multi-period world. Myron, in conversation with Phil Maymin, critiques the standard 60/40 portfolio allocation, highlights the illusion of fixed correlations for risk management, and points out subtle but common mistakes people make in estimating risks, and offers an innovative perspective on how to move forward.
Efficiency in stock and option markets
Myron, in conversation with Phil Maymin, compares and contrasts the market efficiency of stocks and options.