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Posted by on Apr 26, 2018 in CEO Corner, Featured, Investment Perspective, Market Insight

What Did We Learn?

What Did We Learn?

By Noah Hamman

What did we learn from the financial crisis? For me, I think it comes down to transparency and confidence.  It seems, even the smartest investors didn’t understand the dangers located in what was perceived to be highly rated debt securities.  Add in some leverage and a significant lack of confidence, and then boom, we all know what happened.  So,  are we doing anything differently? Well, if the growth of ETFs can be used as a litmus test, investors seem to be embracing transparency, and I think more importantly are taking a smarter approach to assessing and managing risk.  I was just reviewing this table created by the portfolio management team at Newfleet.  They see a different approach to managing debt and credit quality by suggesting that being too big to fail can be applicable in many types of business models.  Very different from equity, each issue, each tranche needs to be analyzed and understood.  Having a team that has depth, experiences and an effective communication process, can put investors in the best place, and hopefully help learn from our mistakes.

Source: Newfleet Asset Management

The AlphaBaskets blog provides frequent market insight and commentary by AdvisorShares Investments, LLC, created by AdvisorShares and other leading active managers.  AdvisorShares Investments is an SEC-registered investment adviser and the investment adviser to the AdvisorShares actively managed ETFs. The views expressed on AlphaBaskets should not be taken as investment advice or a recommendation for any of the actively managed ETFs advised by AdvisorShares.

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