By Justin Carbonneau (@jjcarbonneau) They say a picture is worth a thousand words. The pictures and charts outlined below may actually be worth much more: 30 million unemployed.$7 trillion on…
Excess Returns, Ep. 22: A Look at the Impact of COVID-19 on Value Investing
The process of using past fundamentals to try to predict future prices has been in place for a very long time, and there is substantial academic evidence to support it.…
Behavioral Finance and How to Avoid Making Poor Investing Decisions
In a recent episode of the Validea podcast Excess Returns, Justin Carbonneau and Jack Forehand had an in-depth discussion about the coronavirus pandemic with Daniel Crosby, Ph.D., chief behavioral officer…
Why has Warren Buffett Gone Quiet in the Market?
Last year, Warren Buffett resisted pressure to buy back Berkshire Hathaway stock, pay a dividend or “be more aggressive with investments,” a strategy that seems to be paying off. This…
The Big Short’s Michael Burry Slams Lockdowns
Doctor-turned-investor Michael Burry, who bet against mortgage securities before the 2008 financial crisis, has condemned the coronavirus-related lockdown on social media. This according to a recent Bloomberg article. In a…
Has the Stock Market Become a Value Trap?
“It remains to be seen whether Covid-19 is coming under control. When it comes to valuations, though, the optimists may well have fallen into a trap.” This according to a…
Singer Says Market Will Slide Again, to 50% Below Peak
In a recent letter to clients, hedge fund manager Paul Singer’s firm Elliott Management warned of another market dip coming down the pike, this one to the tune of 50%…
A Look at Some Alternative Ways to Manage Risk
By Jack Forehand, CFA The 60/40 portfolio gets a bad rap. It seems like there is a new article or study every week talking about its weaknesses or outlining why…
Quickest Stocks to Recover from Coronavirus Crash May Be the Smallest
In a recent MarketWatch article, columnist Mark Hulbert suggests that the highest quality small-cap stocks may weather the coronavirus storm better than others. Using data from Ned Davis Research, Hulbert…
Long-Term Coronavirus Damage Must Be Reduced by Fed
In a new series on the “economic cures” for the coronavirus, the Financial Times is offering insights from leading commentators and policymakers on “how to alleviate a devastating global slowdown”.…