Experience Stern | News & Events

Excerpt from Nightly Business Report -- "I think it's a potentially very significant effect in the sense that these products become a political argument for a terror group or a foreign government or an ethnic group that disagrees with a certain idea and to the extent that these creative companies are going to back down and cave to these wishes. This is going to have an effect in many ways on the creative side of the business in the sense that if I'm a producer or an actor or a writer, engaging one of these politically sensitive subjects becomes very risky for me because if my movie never gets out, I may never get paid for having produced the movie in the first place."

Excerpt from China Economic Review -- "In a way, volatility is a bad thing, especially when you see what it’s doing in Russia. But it’s also a good thing, in that it’s the markets responding to new information. And if the markets don’t respond to new information, then they don’t provide their correct function. With the collapse in oil prices, for one thing, that’s probably good news for China, and you’d expect the Chinese economy to respond positively to that because its cost of energy is going to go down. So volatility is a risk to investors, but it’s also essential to the functioning of the economy."

Excerpt from The Washington Post -- "Greater education would do three things to mitigate income inequality. First, as more people move out of the low-skill pool into the high-skill pool, the number of people earning higher incomes would increase in absolute terms. Second, augmenting the supply of high-skilled workers would slow the rapid rate of increase in their wages. And third, on the other end of the spectrum, the more education drives people into higher-skilled, higher-wage areas, the more those who enter or remain in low-skill sections of the job market stand to gain."

Excerpt from TIME -- "The U.S. will remain the world’s most powerful nation for years to come, but that status doesn’t carry as much weight as it used to. Advantages enjoyed for decades are fading as new powers push for new rules and standards—in international politics, the global marketplace and online. Globalization will continue to spread new ideas, speed the flow of information, lift nations out of poverty and drive global consumption. But it’s less likely than before to promote American values and an American worldview."

Excerpt from Bloomberg -- "Led by Alexis Tsipras, [the Syriza party] aims to increase wages, expand the number of government jobs and persuade the European Central Bank and the euro area to write-off some Greek debt. 'None of these actions has a chance of being accepted by Greece’s lenders,' said Nicholas Economides, an economics professor at New York University’s Stern Business School. 'If Syriza insists on these policies, Greece will have to leave the euro with extremely dire consequences.'"

Excerpt from strategy + business -- "Overall, the findings suggest that a CEO’s vacation activity—although perhaps not the most obvious metric—convincingly contributes to and reflects a company’s fortunes, and provides a novel way for investors and competitors to gauge a particular firm’s short-term outlook."

Excerpt from Forbes -- "Amazon investors have been willing to give Amazon the benefit of the doubt (or the benefit of time) with an expectation that as Amazon expands, it will figure out the margins piece. Aswath Damodaran, author of 'The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit' and a finance professor at NYU, found that the median pre-tax operating margin for a US retailer with at least $1 billion in sales is 7.67%."

Excerpt from CCTV -- "'Anytime a new market opens up, there are political risks and legal risks. There is foreign investment in Cuba today, but it’s relatively limited, and so you’re operating in an environment of some uncertainty. But as we’ve seen in socialist economies that have opened up and reformed, most famously China, when you're poised for growth and the economy is growing at 5 or 10 percent a year, we think the opportunities will far outweigh the uncertainties for any company,' Foudy said."

Excerpt from Financial Times -- "'Steady incomes and a social safety net are characteristics of a healthy economy which has moved past simply getting people to work for a living to creating a higher quality of existence,' says Arun Sundararajan, a professor at New York University’s Stern School. 'I worry that this could slip away.'"

Excerpt from The New York Times -- "Aswath Damodaran, a professor at N.Y.U.'s Stern School of Business, has long argued about the danger of companies that try to return to the growth stage of their life cycle. These technology companies, he said, are run by people afflicted with something he calls the Steve Jobs syndrome. 'We have created an incentive structure where C.E.O.s want to be stars,' Damodaran explained. 'To be a star, you’ve got to be the next Steve Jobs — somebody who has actually grown a company to be a massive, large-market cap company.' But, he went on, 'it’s extremely dangerous at companies when you focus on the exception rather than the rule.'"

Excerpt from San Francisco Chronicle -- "'They’re investing in Uber basically because of greed,' he said. 'They don’t want to be left out of the next Facebook. I don’t think deep thinking is going on; they want to be in this game because everyone else is.'"

Excerpt from WIRED -- "'The space that Peers has entered—providing the safety net for the providers of the sharing economy—is potentially huge, and really important,' says NYU Stern professor Arun Sundararajan, who has been studying the economic impact of the sharing economy and, full disclosure, is currently working on a research project with Peers."

Excerpt from CCTV -- "We don't know how this election is going to go. If not enough people vote for the president, and he needs a 60% majority in Parliament, then we will have elections and we'll see who wins. It's possible that the left wins and then we will have a serious problem. So, it's possible. It's not out of the question at all."

Excerpt from LinkedIn -- "After a stunning currency collapse, Russia is now fully in the grips of an economic crisis. How deep is the chaos? Here are five stats that put Russia’s woes in context."

Excerpt from Financial Express -- "Don’t fall for the hype from managers and analysts. Be wary of macro stories. Weigh the company’s competitive advantages and whether they are sustainable. Also, focus not only on the promising company but on how competition, customers and the market is changing."

Excerpt from American Banker -- "The proliferation of settlements in an array of financial markets in recent years makes it clear that banks must show they have made credible and persistent efforts to keep their people in line. They must be able to demonstrate that they have organized themselves into proactively watchful and compliant organizations, with thousands of middle managers who are well trained, motivated and rewarded for spotting and fixing trouble before it happens. This functional approach to controlling behavior is the essence of the much-discussed cultural issue in banks."

Excerpt from Financial Times -- "Relative share price movements also contain useful information. Viral Acharya and his colleagues at NYU’s Volatility Institute have convincingly argued that the extent to which a given bank’s share price falls on days when the broader stock market declines is a decent proxy for the riskiness of the bank’s specific business model and mix of assets. On down days, safer banks should fall less than fragile ones."

Excerpt from TechCrunch -- "'Uber is [among] the first real-world disruption with digital technology,' [Sundararajan] said. He contrasts this with Facebook, Google and Twitter which weren’t directly upending any existing business model the way Uber is. He points out the employees at all of these companies come from the same talent pool, but Uber must deal with a lot of different issues as it establishes itself because it’s taking on an existing business."
 

Excerpt from The New York Times -- "My advice in terms of long-term investing is still to try to have an allocation of your assets in various parts of the world... Trying to predict and buy stocks in companies that have a good long-range future is going to be much harder because the companies come and go. Investing in technology companies would look like an obvious thing to do, but they are not investments that you can make with the confidence that they'll be good for five or ten years."

Excerpt from The New York Times -- "Social targeting was supposed to replace demographic targeting, but that has not happened. Social media is just another media platform. It’s not re-shaping the business the way we thought it would."
 

Excerpt from Bloomberg -- "China has a banking sector which is in need of a lot of help. If you think about what we worry about in the US, we worry about our banks being too big to fail. But in China, the banks are already state owned. There is no possibility that they will fail... The Volatility Institute that I run has now set up a branch in Shanghai called The Volatility Institute at NYU Shanghai. We have translated the whole website into Chinese. It's got loads of Chinese assets in it and it's getting a lot of attention. And it talks about which are the weak banks in China and what could be done."

Excerpt from The Australian -- "Michael Posner, a former State Department human rights official in Barack Obama’s first term, said the detailed accounts of physical and emotional abuse inflicted on prisoners by the CIA would have 'longstanding consequences in terms of reinforcing the need for oversight of the intelligence agencies'."

Excerpt from The Wall Street Journal -- "Working with University College London economist Áureo de Paula and New York University economist Vishal Singh, Mr. Hong used the Homescan data to examine another bubble, in rice. This started in late 2007 when India, worried about food security, banned rice exports. Fears of shortages emerged and panic buying ensued. The U.S. didn’t face a rice shortage, but prices still shot higher, and people started to hoard. Costco Wholesale and Sam’s Club even started rationing bulk purchases."

Excerpt from The Economist -- "The most elegant solution comes from Joshua Ronen, a professor at New York University. He suggests 'financial statements insurance', in which firms would buy coverage to protect shareholders against losses from accounting errors, and insurers would then hire auditors to assess the odds of a mis-statement. The proposal neatly aligns the incentives of auditors and shareholders—an insurer would probably offer generous bonuses for discovering fraud. Unfortunately, no insurer has offered such coverage voluntarily. New regulation may be needed to encourage it."

Excerpt from The Huffington Post -- "There is now a strong literature suggesting that at some point, finance largely becomes extractive, while remaining at the same efficiency level. Thomas Philippon finds that the cost of financial intermediation has not fallen in 30 years."