The concentration of gains in a minority of index fund holdings—a statistical concept called positive skew—makes it extremely difficult for active managers to beat benchmarks, according to a recent Bloomberg article. Research…
Best Earnings Season Since 2011
As of last week, the majority of companies that reported earnings have beaten estimates, making this earnings season one of the best since 2011. This according to an article in…
Jeremy Grantham on the Next Big Investment Drivers
In a recent interview with Wealth Management.com, the founder of management firm GMO shared his insights on how the market has changed and where opportunities are going forward. Between 1935…
How to Avoid Being "Skewed" in the Stock Market
A small number of stocks deliver the majority of stock market gains according to a phenomenon called “skewness,” writes Validea CEO John Reese in a recent issue of The Globe and…
Hulbert Says War Doesn't Scare the Stock Market
While the stock market doesn’t like war, the uncertainty that precedes a foreign military operation is typically resolved soon after any U.S.-led hostilities begin, and the market responds very positively.…
Paul Tudor Jones Issues Warning for Fed
The billionaire investor says that “years of low interest rates have bloated stock valuations to a level not seen since 2000,” and the fact that the current market cap-to-GDP ratio…
Basketball, Bill Miller and Winning Streaks
In a recent article for Forbes, Validea CEO John Reese outlined similarities between winning streaks in sports and those in investing. Most notably, the fact that “inevitably, streaks end,” writes…
Vanguard Has Seen More Inflows than All Competitors Combined
In the last three calendar years, investors have poured $823 billion into low-cost index and ETF funds managed by Vanguard, about 8.5 times as much as all of its competitors…
Peter Lynch Style Investing: Simpler is Better
In an article for this week’s Nasdaq, Validea CEO John Reese highlights the investment philosophy of guru Peter Lynch that centers on the importance of investing in what you know.…
Is It Time for Active Managers to Shine?
“Passive funds tend to attract more inflows after the underlying indexes have performed well, so they’re driven by momentum rather than by analysis of company valuations and fundamentals,” according to…