In a recent masterclass hosted by Delaware Life Marketing and Janus Henderson, Nobel Prize-winning economist Dr. Myron Scholes joined Colin Lake, President and CEO of Delaware Life Marketing, to discuss how academic breakthroughs have transformed real-world investing. Scholes, co-creator of the Black-Scholes Model, explained how his work enabled investors to quantify, and manage risk more effectively, moving beyond traditional asset allocation and diversification.
Scholes emphasized that managing volatility and compounding returns is crucial for long-term wealth, especially for those nearing retirement. He recounted his early role in developing index funds at Wells Fargo, noting how passive investing and diversification have become industry standards.
The conversation highlighted the importance of trust and innovation in financial products. Scholes described adaptive indexing—a strategy he developed with Janus Henderson—which uses dynamic risk management and option market signals to help investors respond quickly to changing market conditions and protect against downside risk.
Looking ahead, Scholes noted that artificial intelligence will drive greater personalization and flexibility in investment management, helping firms deliver tailored solutions and navigate uncertainty more effectively.