Experience Stern | News & Events

Excerpt from Institutional Investor -- "'For any long period of time, private equity has dramatically outperformed public markets,' Schwed says. 'But not in the years after the 2008 financial crisis.'"

On November 20, 2015, at NYU Shanghai’s campus in Pudong, the Volatility Institute at NYU Shanghai (VINS) held its First Annual Conference. The conference was prepared in cooperation with the Economics School at Fudan University as well as Pudong Institute of Finance, and was centered on the theme of “Liberalizations in Emerging Markets.”

Distinguished academics from around the world will convene to share their research in the rapidly evolving field of network economics at the 2015 Fall NET Institute Conference on Network Economics, Electronic Commerce, and Platform Competition, held in partnership with NYU Stern’s Center for Global Economy and Business.

Excerpt from Bloomberg -- "'A low PE ratio can be indicative of cheapness, but it can also be the result of high debt ratios and low or no cash holdings,' Damodaran wrote in a June blog. 'Conversely, a high PE ratio can point to over priced stocks, but it can be caused by high cash balances and low debt ratios.'"

Excerpt from Reuters -- "'There is also the very real concern that some venture capitalists who believe that they are protected from downside risk (even if that belief is misplaced) may be inclined to take reckless risks in investing,' [Damodaran] wrote."

Excerpt from Financial Times -- "'The bottom line is that this looks like a bad deal for the wrong company, at the wrong time and the wrong price,' said Aswath Damodaran, a finance professor at New York University’s Stern School of Business, in a blog post this week."

Excerpt from TIME -- "The economy of Paris is built on its nightlife and cultural offerings. Following the Charlie Hebdo attacks, restaurants and bars saw 68 percent of their reservations cancelled—given the targets this time around, Paris should brace itself for worse. Friday morning’s economic report detailed that the French economy had started growing again on the back of strong consumer confidence—consumer spending had increased 2.6 percent in September compared to the same time last year. That confidence may have taken a big hit."

Excerpt from WalletHub -- "Consumers need to be aware that while these deep discounts are often very good, they are offered to lure customers into the store with the hope that once they are there they will buy more. So, consumers should plan and be disciplined about what they want to buy and where they want to buy it and have done their homework before on who offers the best prices for the items they want to buy. Consumers who go after these deals should have a back up plan made ahead of time of what they will do if they are not one of the lucky ones to get the deal."

Excerpt from The Atlantic -- "'It’s not a very well informed debate,' said Robert Engle, a professor of finance at New York University’s Stern School of Business and a Nobel Laureate in economics. 'Ultimately there are going to be enormous costs involved. The costs to business and society I think are likely to be enormous. Even so far as saying that life as we know it can’t survive, that’s the ultimate risk.'"

Excerpt from ABC News -- "Priya Raghubir, marketing department chair at New York University's Stern School of Business, said the ads made her 'laugh out loud.' 'I was surprised because ... Hallmark’s commercials are annoyingly sweet,' she told ABC News. 'I wouldn’t expect this from Hallmark. The company is making fun of its own stereotype, this picture-perfect world.'"

Excerpt from Newsroom America -- "'This very interesting research demonstrates the prediction of election outcomes at the state and county levels based on an analysis of television viewership across the country,' says Big Data Editor-in-Chief Vasant Dhar, Professor at the Stern School of Business, New York University. 'The results from the predictive model provide useful insights into some of the major drivers that drove 2012 election results. It will be very interesting to see the model applied to the 2016 elections.'"

Excerpt from Bloomberg View -- "Ironically, the solution to Europe’s immigration crisis is of the kind that Europe could not reach during the euro crisis: the issuing of security and mobility bonds (SMBs). These bonds offer the kind of financial engineering, macroeconomic policy and political economy Europe needs to mobilize collective resources and fund its immigration policy while preserving open internal borders."
 

Excerpt from Bloomberg -- "There's no question that French government first and foremost is having a much harder time dealing with this than they did after the Charlie Hebdo attacks in January. That's probably the biggest takeaway. Three months guaranteed of state of emergency, coming into Christmas season. It's going to hurt the economy. It's going to hurt Hollande."

Excerpt from CNBC -- "We're not going to have a global recession because China is going to be able to avoid a hard landing. Therefore, the stock market is going to go up there. Their currency is going to be stable. And therefore, it's not going to be a contagion to other emerging markets."

Excerpt from MIT Sloan Management Review -- "Today’s rapid pace of technological change has fundamentally transformed global IT outsourcing. Traditionally viewed as a cost-saving measure, IT outsourcing is increasingly leveraged as a strategic tool for acquiring cutting-edge innovation. Many companies are expanding their portfolios of IT suppliers to include smaller, highly innovative companies. This pursuit of emerging technologies and capabilities, however, has elevated the complexity of managing supplier portfolios. The outsourcing practices that companies have been maturing in the past decade are under a new level of duress. Today, organizations need to reimagine IT outsourcing strategies in increasingly turbulent business environments."

Excerpt from The Wall Street Journal -- "In a speech on Monday, HUD Secretary Julián Castro said he believed the FHA’s decision to lower mortgage costs this year contributed to the rapid growth in home prices and sales. 'Today, the housing market is better off because of our actions,' Mr. Castro said."

US Department of Housing and Urban Development Secretary Julián Castro delivered an economic and housing policy speech at NYU Stern.  As part of his remarks, Secretary Castro discussed the overall housing market recovery under the Obama Administration and shared highlights of the Federal Housing Administration’s (FHA) 2015 Annual Report to Congress.

Excerpt from Business Insider -- "'This recession has been more persistent than others because it was perceived as an extremely unlikely event,' wrote the economists in a new study. 'Observing the crisis in 2008-09 caused agents to re-estimate macro risk. For example, in 2006, no one raised the possibility of financial panic. Today, the question of whether the financial crisis might repeat itself arises frequently and option prices continue to reflect heightened tail risk (defined as the probability of large adverse shocks).'"

Excerpt from The Boston Globe -- "'A Ferrari costs 10 times as much as a good car, and 7,000 people make that purchase each year. You can get great speakers for a 100th of $80,000,' [Galloway] said. 'I don’t doubt these are better speakers, but are they 100 times better?'"

Excerpt from CNBC -- "I'll tell you the two ways you can justify investing in Amazon and then I'll tell you why I would not invest in either. The first is to think of it as a trade. You buy at $625, you sell at $650, you're going to make money. And if the momentum in the stock carries it forward, you're going to make money. Forget about value; play it as a pricing game. The other is, there is a story out there that you can actually use to get to $625. It's a plausible story. It's a story where Amazon dominates three different businesses: the retail business, the entertainment business and the cloud-computing business. And you could get to $625. And if that's the reason you're investing in Amazon, then all the more power to you. From my perspective, though, the odds of that story unfolding are low, so as an investor, I'm not that interested in Amazon. I love it as a company, but as an investment, it's not for me."

Excerpt from Bloomberg -- “'All large European banks are under great pressure from regulatory changes and low stock prices to change their business models,' Roy Smith, a finance professor at New York University’s Stern School of Business, said in an e-mail. 'These changes have to be quite significant to make enough difference.'”

Excerpt from Xinhua -- "'I think in the short term the GDP could get worse, [and] the process of rebalancing could actually be painful, but a short-term pain to make the country healthier and more vibrant in the future,' said Foudy."

Excerpt from The Economist -- "On October 26th, an op-ed in the Wall Street Journal by Michael Spence and Kevin Warsh, both of Stanford University, argued that the Federal Reserve’s $3 trillion bond-buying programme, which was designed to push down long-term rates and boost corporate borrowing, has actually caused business investment to fall. The authors write that the Fed’s unconventional policies to expand the money supply, known as quantitative easing (QE), have made short-term financial assets like stocks and bonds more appealing as their capital value increases, thereby diverting capital from more productive longer-term investments in the 'real economy'. The result has been low investment growth, weak productivity, and stagnant wages."

Excerpt from TechDay -- "We realized that what’s already out there isn’t what we would want, or what our friends want. Bachelorette parties should be truly unique and special, and reflective of the person getting married. That’s when we realized there’d be a true opportunity here."

Excerpt from The New York Times -- "'I think it’s just become wildly overblown because everything gets wildly overblown today,' Professor Winer said. 'The total amount of attention that Starbucks gets and the reaction to it is something that could, in fact, work in their favor.'"