While the rapid rise in index funds over the past few decades is a “feel-good story—a populist victory, as finance goes” says an article in last month’s The Atlantic, there’s a…
Author: Validea
Quant Funds Showing Weaker Returns
Decreased returns from computerized investment strategies (“quant” funds) suggest that the robo revolution could be slowing down, according to a recent Bloomberg article. According to Eagle’s View Asset Management founder Neal…
Hulbert: High Valuations Could Trigger a Bear Market
Citing the rapid stock market decline that occurred in March 2000, financial analyst and journalist Mark Hulbert says investors should “expect some incredible fireworks when this incredible bull market finally…
Ritholtz on the Challenges of Active Investing
In a Bloomberg article from earlier this month, columnist Barry Ritholtz outlines some of the benefits and challenges inherent in active investing. He cites the following “desirable goals” and some…
David Tepper Says the Market is Not Overheated
The head of Appaloosa Management is “rejecting arguments that stocks are overvalued and believes there are still plenty of opportunities,” according to a recent CNBC article. Tepper says “any comparisons…
The Dow Isn't Best Way to Gauge the Market
Although the stock market has had a strong run in recent years, New York Times columnist Jeff Sommer argues that the level of performance “depends on what you mean by ‘the…
Beware of Stock Market Charts that Tell Half the Story
When viewing data charts intended to show that, historically, market declines have been worse than increases, investors should make sure they have the whole story before panicking. This according to…
Zweig: Cheaper Share Prices Can Be an Illusion
When ETF shares appear to be trading at a discount to the index of stocks they hold, according to a recent article in The Wall Street Journal by columnist Jason…
Quant Funds Attempt to Disrupt Market
Quantitative hedge funds—that use mathematical algorithms to effect trades—are becoming increasingly popular, “reflecting in part a long run of underwhelming performance and expensive fees across the broader industry,” according to…
The Pros and Cons of the Shiller P/E Ratio
By Jack M. Forehand — The Shiller P/E (CAPE) Ratio has become one of the most widely followed market valuation metrics. It became popular during the Technology bubble in the…