Value Investing Might Be Dead and Here’s Why

“Value investing might have lost its value,” according to a recent CNBC article, citing comments from asset management company AB Bernstein that describe the classic strategy as “increasingly irrelevant thanks to central banks and technology.” Bernstein reportedly attributes the long period of low interest rates and the Fed post-financial crisis quantitative easing program for the “demise” of value investing, adding, “an easier monetary policy lifted valuations across the board, leaving a smaller premium on cheap… Read More

Five Questions:  Questioning Conventional Wisdom With Lawrence Hamtil

By Jack Forehand, CFA (@practicalquant) Anyone who reads my articles regularly knows that I am a big user of Twitter. Some of the best investors in the world regularly post to the platform and it is hard for me to describe the amount I have learned from using it. My favorite people to follow on Twitter are those who make me think about things in different ways than I currently do. One person who certainly… Read More

Recession Coming Soon? Not According to Google Trends

Google trends data are not showing that a U.S. recession is looming, says a recent article in Bloomberg. Analysis by the firm DataTrek Research shows that Google queries for coupons, unemployment and television give “little cause for concern just now.” In a recent note to clients, the firm’s co-founder Nicholas Colas added, “If the Federal Reserve looked at Google Trends they might not be so inclined to cut rates next week.” In his note, Colas… Read More

The Fee Free-Fall Will Continue

Mutual fund fees have been on the decline for seven years, and the trend isn’t expected to slow. This according to an article in Institutional Investor. The article reports that PwC’s 2019 U.S. Mutual Fund Outlook report reflects that by 2025, combined active and passive expense ratios will decline by 22 percent. The report also states that U.S. mutual fund assets are expected to increase by 46 percent by 2025, but that industry revenue will… Read More

Investing Insights from Joel Greenblatt

During a recent interview at the CFA Society New York, author and legendary investor Joel Greenblatt offered perspective and insights regarding the state of value investing and its future outlook. Here are some highlights: ·      Greenblatt defines value investing as buying shares of a strong business at a discount. “The whole value versus growth thing is a little bit off,” he said, arguing that low price-book and low price-sales metrics are factors more than indicators of… Read More

Momentum Investing – the What, the Why, the How and the Risks

By Justin Carbonneau (@jjcarbonneau) At the most basic level, momentum investing in the context of security selection can be defined as buying securities that have done the best over the past 12 months and selling those that have done the worst. While there are multiple methods and timeframes used to measure momentum, which we’ll get into below, the idea of buying based on price strength and selling based on price weakness is at the core… Read More

Where I Have Found the Most (and Least) Value Spending Money

By Jack Forehand, CFA (@practicalquant) Last week, Daniel Crosby, the author of the Behavioral Investor started a really interesting thread on Twitter that got me thinking about how I spend money and the value I get from it. In the world of investing, everything we invest our cash in is expected to produce a monetary return. But in the world of life, the best investments often produce benefits that are impossible to quantify. In his… Read More

Andreessen Horowitz’s, Once Again, “Blows Up” the Venture Capital Model

In April, Forbes profiled the venture capital firm Andreessen Horowitz, tracking the firm’s emergence from the 2009 financial crisis with a promise to “find a new generation of ‘megalomaniacal’ founders—ambitious, assertive, singularly focused—who would, in the mold of CEO Steve Jobs, use technology to ‘put a dent in the universe.’ “ Founders Marc Andreessen and Ben Horowitz, the article says, “laid out their campaign to take on Silicon Valley” and proceeded to do just that… Read More

Ray Dalio: Gold Will Appeal During Global Market “Paradigm Shift”

Billionaire investor Ray Dalio believes that the push by central banks toward policies that devalue currencies is about to cause a shift in investing toward assets such as gold. This according to a recentCNBC article. In a recent LinkedIn post, the article reports that Dalio explained, “For this reason, I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio.” The article points out that his note comes two… Read More

Gundlach: The Next Recession Will Come with A Lot of Turmoil

In an interview with Yahoo Finance earlier this year, DoubleLine Capital CEO Jeffrey Gundlach shared insights about the markets and the economy. Here are some highlights: The Federal Reserve seems to have “lost its way” in terms of articulating a strategy of either easing or tightening. The biggest risk on the radar, he said, is that when the next recession comes, “there’s going to be a lot of turmoil.” Specifically, he identified the corporate bond… Read More