The rise in market volatility has resulted in poor results for many quant funds, according to a recent Bloomberg article that says, “They were caught flat-footed in February when markets turned…
Wall Street Looks to Superforecasting
The importance of accurate forecasting is leading some firms to using so-called superforecasting—a statistical approach in which “large numbers of estimates are averaged to find the most likely answer.” This…
Morningstar on Investment Truths
A recent article in Morningstar recounts insights from AQR’s Cliff Asness on the following two questions: Can current stock valuations help predict future returns? “Probably yes,” writes Asness, “but not…
If You Take Risk, Get Compensated for It
By Jack Forehand (@practicalquant) — Investing can seem incredibly complex at times. With the rise of complicated computer-based strategies, more and more factors being discovered every day, and even more advanced…
In a Trade War, Investors Hide in Small-Caps
Small-cap stocks, which tend be “insulated from overseas turmoil” have been performing well against the backdrop of a looming trade war with China. This according to a recent article in…
Economist Says U.S. Recession Possible in 12 Months
David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates Inc., said that January’s high in the S&P 500 “will prove to be the peak of the bull market…
Hedge Funds Share Best Ideas Before Dumping Stocks
A recent article in Bloomberg discusses the tendency for hedge funds to pitch their best investment ideas at investor conferences, only to then “sell pitched stocks after the conferences to…
Will Future Robo Advisers Be More Ethical?
According to a recent article in The Wall Street Journal, the robo-advisers of tomorrow are expected to be smarter, and “might even have a conscience.” Today’s robo-advisers, the article explains,…
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] Considerations in Momentum Investing [2] Howard Marks: Computers Won’t Replace the Best Investors [3] Paul…
Preparing for Rising Interest Rates
A recent article in Advisor Perspectives addresses a number of issues related to rising interest rates and how investors can prepare for them. Here are some highlights: Yield curve outlook—…