Factor Investing Tips

For investors interested in factor-based strategies, a recent Barron’s article suggests that it can “take longer than most investors are willing to wait for signs of success.” The article cites comments from Gregg Fisher, founder of Gerstein Fisher (which managed $3 billion using a factor-based approach), who say investors should “shift their factor mixes as time goes on to reduce the likelihood of an ugly surprise shortly before retirement.” According to Barron’s, Wall Street is… Read More

Stocks are Showing More Volatility

Investors are seeing more volatility than they expected in the stock market this year, according to a recent CNBC interview with LPL Financial’s Ryan Detrick (outlined in CNBC.com). According to Detrick, the article states, “markets have not seen moves this wild since the financial crisis.” Citing the threat of a trade war and dips in tech stocks as contributing factors, the article compares recent market turbulence to the run of volatility the market saw back… Read More

Most Read Posts on Validea’s Guru Investor

Below are links to our most popular posts for this week on Validea’s Guru Investor blog. [1] The Market May Not Be As Expensive As You Think [2] How to Keep Investing Perspective [3] Larry Swedroe: Value Premium Still Exists [4] Bill Nygren Talks Value Investing at Google ——- Photo: Copyright: arcady31 / 123RF Stock Photo  

Bonds Still a Reliable Safe Haven

After years of market calm, volatility is back, but investors’ faith in bonds has been “shaken” by years of low interest rates, according to a recent Bloomberg article. But the article advises not to “assume that bonds’ muted outlook will hamper their ability to hold up during market downturns. In fact,” it adds, “during the 20 bear markets since 1928…the average return from long-term government bonds was 5 percent, and the median return was 3.2… Read More

Larry Swedroe: Value Premium Still Exists

In a recent article in ETF.com, BAM Alliance’s director of research shares insights on the state of the value premium in today’s market. Swedroe explains that “even though the value premium has been quite large and persistent over the long term, it’s been highly volatile” (citing data from Dimensional Fund Advisors). He adds, however, that a long period of value underperformance “should not cause investors to abandon a well-developed plan” or question whether the value… Read More

Shades of the Swinging Sixties Raise Inflation Fears

A recent Bloomberg article underscores the similarity between today’s market conditions and those of the 1960s; specifically, how low unemployment set inflation on an upward run, “virtually doubling over the year to 3 percent.” Some economists, the article reports, see trouble looming again. The article quotes Paul Tudor Jones, founder of hedge fund Tudor Investment Corp., who told Goldman Sachs, “This reminds me of the late 1960s when we experimented with low rates and fiscal… Read More

The Market May Not Be As Expensive As You Think

By Jack Forehand (@practicalquant) —  The consensus opinion among followers of the market has been pretty consistent for some time now. The general belief is that the stock market is trading at one of the highest valuations it ever has, and that those lofty valuations bode very poorly for the future. I understand the narrative very well because I have been one of the people saying it. The data also backs it up. Market valuations tell… Read More

Will Tech Stocks Continue Their Rapid Growth?

In a recent Wall Street Journal article, columnist Jason Zweig talks about the growth in tech stocks and the outlook for their continued upward trend. “At their lows this week,” writes Zweig, “the technology shares that have until recently been the stock market’s darlings—Facebook, Amazon.com, Netflix, Google’s parent company Alphabet and other giants—had fallen more than 17% since March 13. Over the same period, U.S. stocks overall fell 8%.” Although Zweig points out that the… Read More

How to Keep Investing Perspective

By John Reese (@guruinvestor) —  “Perspective shifts us from worry to options.” Wise words written by Carl Richards, CFP in his Behavior Gap email last week—and timely given the up-and-down market environment we’re facing. Richards, creator of The New York Times Sketch Guy column, also offered his depiction of how perspective can benefit us: Richards recounts a white-water rafting experience during which, when feeling worry while approaching the rapids, he found comfort in stopping the boat… Read More

Bill Ackman Seeing Rapid Investor Redemptions

After three years of poor performance, Bill Ackman of Pershing Square Capital Management LP is losing investors at a clip and, according to a recent article in The Wall Street Journal, “facing a future that would no longer include managing a private hedge fund.” The Blackstone Group LP has been withdrawing cash from the fund, and JPMorgan Chase & Co.’s asset-management group has stopped recommending the fund, the article reports. Pershing’s assets have fallen from $20… Read More