Global (equity) climate change: 2008 a tipping point?
Mar 3rd, 2009 | Filed under: Institutional Investing, Today's Post
In the movie “The Day After Tomorrow“, Dennis Quaid’s character tries to convince global leaders that a gradual change in the world’s climate patterns is about to reach a tipping point. After that, pleaded Quaid, global climate patterns would experience a sudden and dramatic shift – stabilizing at an entirely new equilibrium. Quaid was right of course, and a couple of days later a glacier covered New York City (some creative license was apparently taken here, but you get the point).
Has a permanent new equilibrium been reached in the institutional investment world in 2008? Recent experience has shaken the foundation of some institutional investors’ faith in equity beta. And unlike during past equity market downturns, some believe that things may have been permanently changed this time around.
As Pensions & Investments reported last week, European investors are in the midst of a once in a lifetime shift away from equities. Reports P&I: More…
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