Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JWM
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • LinkedIn
  • Twitter

User menu

  • Sample our Content
  • Subscribe Now
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Wealth Management
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Subscribe Now
  • Log in
The Journal of Wealth Management

The Journal of Wealth Management

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JWM
    • Editorial Board
    • Published Ahead of Print (PAP)
  • LinkedIn
  • Twitter
Article

Leaning against the Wind: Reflections
on Institutionalizing Countercyclical Investment

Bradley A. Jones
The Journal of Wealth Management Summer 2013, 16 (1) 85-89; DOI: https://doi.org/10.3905/jwm.2013.16.1.085
Bradley A. Jones
is a financial sector advisor at the International Monetary Fund in Washington, DC.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: bradley.anthony.jones@gmail.com
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Click to login and read the full article.
Don’t have access? Sign up today to begin your trial to the PMR platform 

Abstract

For any number of reasons, the principles of contrarian investing can prove exceedingly difficult to put into practice—particularly in the heat of battle. In response, I propose four relatively straightforward ways in which long-term investors might look to build a defense against the damaging effects of pro-cyclical investment. These include: 1) recalibrating estimates of risk more consistent with valuation-based risk premiums than price volatility (price volatility and valuation risk have been negatively correlated at key turning points in the U.S. stock market over the past century); 2) eschewing price-based rebalancing in favor of a valuation-based alternative; 3) communicating to stakeholders a sense of short-term (unrealized) losses that should be expected in pursuit of longer-term objectives; and 4) rethinking the opportunistic role of cash, as a key comparative advantage for long-term investors is the counter-cyclical market-stabilizing provision of liquidity during liquidity droughts when risk premiums are typically widest.

  • © 2013 Pageant Media Ltd
View Full Text

Don’t have access? Register today to begin unrestricted access to our database of research.

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Wealth Management: 16 (1)
The Journal of Wealth Management
Vol. 16, Issue 1
Summer 2013
  • Table of Contents
  • Index by author
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Wealth Management.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Leaning against the Wind: Reflections on Institutionalizing Countercyclical Investment
(Your Name) has sent you a message from The Journal of Wealth Management
(Your Name) thought you would like to see the The Journal of Wealth Management web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Leaning against the Wind: Reflections
on Institutionalizing Countercyclical Investment
Bradley A. Jones
The Journal of Wealth Management Apr 2013, 16 (1) 85-89; DOI: 10.3905/jwm.2013.16.1.085

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Leaning against the Wind: Reflections
on Institutionalizing Countercyclical Investment
Bradley A. Jones
The Journal of Wealth Management Apr 2013, 16 (1) 85-89; DOI: 10.3905/jwm.2013.16.1.085
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • RECALIBRATE ESTIMATES OF RISK AS THE THREAT OF PERMANENT IMPAIRMENT OF CAPITAL STEMMING FROM THIN VALUATION-BASED RISK PREMIUMS
    • ESCHEW PRICE-BASED REBALANCING FOR VALUATION-BASED REBALANCING
    • MANAGE EXPECTATIONS AND COMMUNICATE PERFORMANCE WITH A FOCUS ON LONG-TERM RESULTS—BEFORE THE WOLVES ARE BARKING AT THE DOOR
    • RETHINKING CASH: THE OPPORTUNISTIC ROLE OF MARKET-STABILIZING LIQUIDITY PROVISIONS DURING LIQUIDITY DROUGHTS
    • CONCLUDING REMARKS
    • ENDNOTES
    • REFERENCES
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar

More in this TOC Section

  • Well-Being Advisers
  • Editor’s Letter
  • Editor’s Letter
Show more Article
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • LinkedIn
  • Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2021 Pageant Media Ltd | All Rights Reserved | ISSN: 1534-7524 | E-ISSN: 2374-1368

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy