Active fund management has been losing followers but isn’t going away entirely, writes Barry Ritholtz in a recent Bloomberg article. While stock-picking has seen a host of changes, he offers…
Combined Risk and Defensive Strategy for Investors
Investors are faced with the decision, as described in a recent Barron’s article, of whether to “bet big on the bull case—and leave themselves exposed if it doesn’t materialize,” or…
Hulbert Shows How the Market May Be Undervalued by One Measure
A finance professor at Cornell University has introduced yet another stock market valuation indicator and has found it to be more accurate than many others, including the Shiller PE (also…
Active Fund Performance Improved in Recent Months
Morningstar data shows that, in February, actively managed mutual funds posted their first month of positive net inflows since April 2015, according to an article in The Wall Street Journal.…
Shiller Says Market Valuations Warrant Caution
Nobel Laureate Robert Shiller writes in a recent New York Times article that “today’s CAPE is sending a troubling message,” noting that the market valuation ratio he developed (which now…
Dalbar: Average Investor Underperformance Reflects Emotional Investing
The annual study published by financial research firm Dalbar reports that the average investor in U.S. stock mutual funds earned 7.3% last year versus the S&P 500’s 12% return. This…
Book Value - A Buffett Favorite, But Far From Perfect
Article Summary Warren Buffett reports Berkshire’s book value in Berkshire’s Annual Letter, but Buffett admits it is not perfect in determining the value of a firm. The price-to-book ratio is…
Fundamentally Strong Picks for the Contrarian Investor
The Citigroup Economic Surprise Index, which measures how current economic data is comparing to expectations, is on the rise along with investor confidence regarding the expanding economy, writes Validea CEO…
European Stocks Look Appealing Compared to U.S. Shares
Investors shying away from stretched stock prices in the U.S. are “gravitating toward Europe for cheaper bargains as the trade matures,” according to a recent Bloomberg article. Morgan Stanley equity…
Four Magic Formula Picks for a Stretched Market
While there are many that believe today’s stock market is “frothy,” Warren Buffett argues, “measured against interest rates, stocks actually are on the cheap side compared to historic values.” This…