Article: Reconciliation: Bear Market Practices for Bull Market Growth.

After the market turmoil at the beginning of the millennium, the asset management industry enjoyed a period of relative stability and profitability, with several straight years of double-digit asset growth. Yet, as the lessons of history--and recent market moves--demonstrate, this should be no time for complacency, but rather a window of opportunity in which to focus on increasing efficiencies.

As so starkly demonstrated during the last bear market, high and inflexible cost bases are the nemesis of market participants during times of constrained or falling revenues. While the recent run of stellar returns may have temporarily removed some of the urgency around ...

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