Athletes & Entertainers – implications of sudden wealth

New York – A new CNBC documentary called “Newbos: The Rise of America’s New Black Overclass,” will focus on the growing class of self-made black billionaires and multimillionaires – mostly under 40 – who have built wealth and influence in the sports, entertainment, and media industries. The show is an original one-hour primetime documentary. The […]

Entrepreneurs’ Relief?

Question: Duncan, what is Entrepreneurs’ Relief? Entrepreneurs´ relief was introduced with effect from 6 April 2008. This relief is available to individuals and trustees who, on or after 6 April 2008, make a “qualifying business disposal” of the whole or part of a “trading business” or shares in a trading company in which they have […]

Lawsuits against UBS and HSBC over Madoff exposure

Madoff – the saga Investors who lost money in the alleged $50bn (€37.7bn) swindle perpetrated by Bernard Madoff have filed lawsuits against UBS and HSBC in New York and Luxembourg, claiming the two banks should have protected assets allocated through “feeder” funds to the financier’s business more carefully, according to a report in the Financial […]

Q&A: Market Turmoil?

Question: Is the market turmoil a sign that markets are not efficient? Answer: The market turmoil is caused by some combination of (i) quickly fluctuating changes in expected cashflows (future profitability), and (ii) variation in investor risk aversion that leads to variation in expected returns (the discount rates for expected cashflows). Both responses can be […]

Quote of the Day

On losses associated with Yale’s endowment over the past year: “I don’t think it makes sense for an institutional investor with as long an investment horizon as Yale’s to structure a portfolio to perform well in a period of financial crisis. That would require moving away from equity-oriented investments that have served institutions with long […]