Welcome to The Index Investor
Global Macro Analysis and Asset Allocation Insights
In August 2019, we published "The Next Downturn: How Different? How Deep? How Long?"
In light of the high uncertainty surrounding the economic consequences of COVID-19, we are making it available for free.
Since 1997, our mission has been to help investors, corporate, and government leaders better anticipate, more accurately assess, and adapt in time to emerging macro threats.
For 23 years, we've made sense of global macro uncertainties, and provided subscribers with advance warning of the 2008, 2000 and 2020 financial crises (more about the history of Index Investor since its founding in 1997 can be found here. Our core investment beliefs can be found here, including 15 year results for our model index portfolios).
Successful investing is ultimately based on accurate forecasting. Here's a brief description of our methodology:
Compared to new quantitative data, new qualitative data diffuses more slowly across market participants, and is only gradually incorporated into asset prices. This time delay, plus the accuracy of their mental models, enables investors to avoid large losses by taking action before the market's dominant narrative changes.
We focus on providing insights about the evolving dynamics of the global macro system and the emergent threats they produce that lie beyond the detection horizon and analytical capabilities of quantitative algorithmic methods. We then translate these into probability forecasts for different macro regimes, and use them to adjust our model portfolio's asset allocation. That's our edge — and potentially yours too, if you subscribe.
Specifically, we collect and synthesize high value information (threat indicators and surprises) in the areas of technology, health and disease, energy and the environment, the economy, national security, society, and politics. Their complex interactions over time produce the effects we later observe in the form of investor beliefs and financial market valuations, volume, and returns.
Our Evidence File helps subscribers better understand the trajectory and dynamics of important new developments in each of these areas.
(4) In between monthly publications, we publish flash updates — on our blog, on our LinkedIn page, via email, and via our Twitter @indexllc — if and when we obtain high value information that results in a substantial change to a forecast probability.
(5) A feature article providing an in-depth analysis of either a key macro-uncertainty (e.g., how close the system is to one or more critical thresholds) or an aspect of making good investment decisions in the face of complexity and uncertainty. These articles typically synthesize a broad range of academic research and practitioner experience to provide thought provoking insights about critical issues facing investors and their advisors.
Here's what one subscriber recently wrote to us: "I am delighted to be able to get your analysis again. We get everything from Wall Street, and they all seem to be saying the same thing. Your take is greatly appreciated." Another said "your research is unique. There's nothing else like this out there."
You can download a free sample copy of a recent issue to get a better understanding of what we provide subscribers each month.
Our back issues and Research Library are also both free. Investors can browse our curated content on a wide range of issues affecting medium and long-term asset class valuations, including technological, environmental, economic, national security, social, demographic, political, and financial market trends and uncertainties, as well as potential "grey swan" wildcards like infectious disease, cyber, and large-scale electromagnetic events.
We also provide custom research as well as speaker services on how to increase forecast accuracy, understanding the differences between active, passive, and index investing, and how to overcome the individual, group, and organizational obstacles to making good decisions in the face of uncertainty. Our speaker offerings include seminars for advisors' clients and speeches for larger groups. Click here to learn more.