A recent note from strategists at JPMorgan Chase says that we are seeing “the largest relative valuation bubble in modern equity market history,” with value stocks trading at the most…
Five Questions: Lessons From Finance History with Jamie Catherwood
By Jack Forehand, CFA (@practicalquant) Recency bias can be a major issue for many investors. When we analyze the probability of any event in the market occurring, we tend to…
How History Informs the Valuation Discussion
In a recent article for Fortune, Ben Carlson writes, ”Market valuations are an important input into the investing process. But the relationship between the markets and valuations is far from…
The Value Versus Growth Investing Debate Continues
Although the value strategy has fallen on hard times for the past 12 years causing many to question whether it still works, historical data shows that the value advantage exists.…
GMO's Montier: Bearish on Stocks but Bullish on Monetary Theory
In a recent interview with Barron‘s, GMO strategist James Montier shared his concerns about the U.S. stock market and his bullish view on modern monetary theory (MMT), which he has…
Private Equity: Bigger Funds Not Necessarily Better
Private equity firms are raising increasingly bigger funds, but they don’t necessarily deliver bigger returns. This according to a recent article in The Wall Street Journal. “The rise of megafunds…
Winton's David Harding Offers Insights on Quant Investing
In an interview with Bloomberg earlier this year, Winton Capital Management founder and quantitative investing pioneer David Harding offered insights on the challenges faced by today’s quants, the competitive environment…
Six Common Misconceptions About Factor-Based Strategies
By Jack Forehand, CFA (@practicalquant) Factor strategies have grown exponentially in the past decade. Almost every major asset manager now offers their variation of things like value, momentum, quality, and…
It's a Great Time to Be an Active Manager
One prominent asset manager says that dominated of today’s market by passive funds and quantitative strategies is creating opportunities for his actively managed funds. This according to an article inInstitutional…
Ray Dalio on Unpredictability of Markets
The recent news that Bridgewater Associates’ flagship fund—the Pure Alpha fund—lost 4.9% in the first half of this year should underscore the unpredictability of markets, according to a recent article…