Some quantitative investors are concerned that commodity trading advisers (CTAs) are “ill-equipped to handle a new era of steeper declines and sudden volatility spikes,” according to a recent article in…
Author: Validea
The 40% Rule in Forecasting
A recent article in The Wall Street Journal discusses the 40% rule, which it describes as “a favorite forecasting tactic of Wall Street analysts and other prognosticators trying to make…
Highest-Paid CEOs Tend to Run Worst-Performing Companies
A study by research firm MSCI shows that “the best-paid CEOs tend to run some of the worst-performing companies and vice versa—even when pay and performance are measured over the…
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] Why Artificial Intelligence Won’t Fundamentally Change Investing [2] Become an Equity Compounder à la…
Research Affiliates on the Dangers of Using Past Returns to Predict the Future
In the first of an eight-part series, Research Affiliates addresses market returns and the dangers financial planners face with respect to setting expectations for clients. Specifically, the article highlights the…
Advertising Accountability Comes To Blockchain
One can either mine bitcoins or buy them from someone by paying cash
Advertising Accountability Comes To Blockchain
One can either mine bitcoins or buy them from someone by paying cash
Morningstar: Can Active Stock Funds Insulate Investors from Market Downturns?
A recent Morningstar article outlines the firm’s performance analysis of active U.S. equity funds in both “down” and “up” markets over the twenty years ending January 2018 to determine whether…
Morningstar Incorporates Artificial Intelligence into New Ratings
Earlier this month, Morningstar introduced new quantitative ratings that will cover more than 10,000 funds and ETFs. The system will use both machine learning and artificial intelligence to “learn from…
Study Shows CEOs Cut Investment Right Before Equity Vests
A recent article in the Harvard Business Review addresses the question of whether today’s businesses suffer from “short-termism”—more specifically, if CEOs are cutting investment to pump up their company’s short-term…