Earnings often dominate the investing headlines, but according to a growing body of research, a better indicator of future stock returns may be gross profitability. The research focuses on gross…
Category: Historical Lessons
Ritholtz Not Sweating the Shutdown -- for Now
Though the government shutdown and debt deal drama are monopolizing the financial headlines, Barry Ritholtz of The Big Picture blog says it’s had little impact on his investing approach. And…
For Most, No Time Is a Good Time for Stock-Picking
While stock correlations have been declining, several researchers say that doesn’t make the current environment any better for stick pickers — whose odds of success remain exceptionally low. “One factor…
PIMCO: The Case for Commodities
The commodities boom that occurred in the late 90s and much of the 2000s may be over, but PIMCO thinks that commodities are still a very worthwhile investment going forward.…
Spinoffs, Buybacks, and Splits -- Oh My!
Spinoffs, share buybacks, stock splits, insider purchases — investors’ ears often perk up at the mention of these corporate moves. But are they really reliable stock indicators? In a recent…
The Wrong Lesson Learned From The Financial Crisis
It’s been nearly five years since the financial crisis of 2008 hit, and MarketWatch’s Chuck Jaffe says investors have learned some lessons from the crisis — the wrong lessons. The…
The Trouble with Mean Reversion
Mean reversion is a key part of many investors’ strategies, and right now some are pointing to above-the-mean cyclically-adjusted price/earnings ratios as a sign that stocks are overvalued. But Morningstar Vice…
The Stock-Pickers Market Returns ...
After years of stocks appearing to move in lock-step, could we finally be returning to a “stock-pickers market”? The Wall Street Journal’s Steven Russolillo says the data indicates that may…
... But then Again, It Never Really Left
While many have been declaring that a decline in correlations is heralding the return of a “stock-pickers market”, Investment News’ Jason Kephart says the entire notion of a stock-pickers market…
Hulbert: Buy and Hold Still Wins
If you’ve spent time lately trying to figure out when the four-plus-year bull market will come to an end, Mark Hulbert has a message for you: Stop kidding yourself. “The…