A Refresher on Stock Investing Basics

In a recent Bloomberg article, columnist Nir Kaissar argued that profits, governance and price should always be front and center in the stock investment decision-making process. Kaissar used the missteps made by SoftBank CEO Masayoshi Son and the bank’s subsequent $6.5 billion quarterly loss as a cautionary tale. He writes, “One problem, according to Son, is he overlooked that startups need solid governance and a path to profits,” citing SoftBank’s investments in WeWork and Uber… Read More

David Tepper Leaves Big Shoes to Fill

An article by Bloomberg columnist Nir Kaissar highlights the recent exit from the hedge fund industry of star manager David Tepper, who last month announced that he plans to return money to outside investors and focus his attention on managing his own fortunes and running his Carolina Panthers football team. Noting that Tepper is the latest in a long line of managers who have chosen different paths, Kaissar writes, “It’s hard to blame them. They… Read More

The U.S. Expansion is Still Going

In a recent Bloomberg article, columnist Nir Kaissar suggests that the current extended period of economic growth—albeit raising plenty of questions among some market-watchers—may have a ways to go. Kaissar cites comments made by Federal Reserve Chair Jerome Powell, who said the U.S. is “on a good path for this year” due to healthy growth, a strong labor market and low inflation. He also cited comments shared by former U.S. Treasury Secretary Timothy Geithner in… Read More

Solid Evidence and Not-So-Solid Returns

Since the 2008 financial crisis, investing has evolved more toward evidence-based strategies in which ideas are rigorously tested or backed by credible research. This according to an article by Bloomberg columnist Nir Kaissar. “The problem,” Kaissar explains, “Is that evidence-based investing has been a bust over the last decade. Everything investors had been doing wrong, according to the evidence, turned out to be right. While I think the last 10 years are going to turn… Read More

Bill Gross Had the Right Idea

An article in Bloomberg by columnist Nir Kaissar offers insights on the career of “hall-of-fame” bond manager Bill Gross, who announced his retirement earlier this year after what the press hailed as a “messy last act” as manager of the Janus Henderson Global Unconstrained Bond Fund (since 2014).” “Gross made some big bets at Janus Henderson that didn’t pay off,” writes Kaissar, who adds that even though things didn’t go the way the manager would… Read More

The Inversion Worth Worrying About

In a December article for Bloomberg, columnist Nir Kaissar argues that, albeit troubling, all the hype about a potential yield curve inversion is “overdone, at least so far.” Instead, he asserts, investors should be watching the difference between the earnings yield on stocks and the yield on cash, because, “when the earnings yield has dipped below the cash yield in the past, stocks were in for a rough ride.” Kaissar cites the first such recorded… Read More

Corporate Debt and the Next Recession

A recent Bloomberg article features a debate between columnists Nir Kaissar and Noah Smith on whether U.S. companies have accumulated too much debt and whether it represents a risk to the economy. Here are some highlights: According to Smith, Bloomberg News data showed that “a lot of companies are so leveraged that they would have a junk label if credit raters weren’t being lenient.” “I don’t see much in companies’ financial statements to be alarmed… Read More

Yale’s Social Investing Needs Clarity

According to an article in Bloomberg by columnist Nir Kaissar, Yale University recently announced that its $29.4 billion endowment could exit private investments it “deems unethical, extending a policy it has long applied to investments in public markets.” But the article argues that the attention garnered by sustainable investing “hasn’t yet translated into investment,” at least as measure by the flow of funds into ETFs: The industry, writes Kaissar, has a basic problem: “Investors are… Read More

Bull Market Money Managers: Clients or Convictions?

In an article for Bloomberg, columnist Nir Kaissar discusses the quandary faced by many money managers who have seen the S&P 500 outperform other investments over the last decade. “No diversified portfolio has any hope of keeping up with the market, not even those belonging to elite universities,” writes Kaissar, adding, “Most stock pickers can’t keep up, either.” Therein lies the quandary, he asserts, since U.S. investors “care a lot about keeping up with the… Read More

Value Versus Growth in Emerging Markets

“Emerging markets are flashing warning signs, but don’t tell that to value stocks,” writes Bloomberg columnist Nir Kaissar, who adds, “To some investors’ surprise, value stocks are holding up better than growth.”   Theoretically, Kaissar explains, that’s not supposed to happen. “Value stocks, after all, are cheaper than growth for a reason: They represent companies, and sometimes whole sectors, that have fallen on hard times or are struggling to grow.” But in reality, he says,… Read More