…returns are attributable to different behavior patterns by those firms. “In particular,” the article explains, the study reports that private equity firms “act as deep pockets investors: when the internal…
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Overlooked Fact About Buffett’s Fortune
A recent CNBC article offers an excerpt from Morgan Housel’s new book, “The Psychology of Money: Timeless Lessons on Wealth, Greed and Happiness” in which he underscores the importance of…
Excess Returns, Ep. 42: Why the Stock Market is Near All Time Highs Despite the Major Issues in the Economy
…levels of government stimulus; Why psychology can often explain short-term market moves better than fundamentals. We hope you enjoy the discussion. Watch on YouTube Apple Podcasts All Other Podcast Platforms…
How Stocks and Bonds Have Responded Differently to Coronavirus Pandemic
…stretch. One would think that if the behavior of stocks and bonds diverges so sharply, that arbitragers would enter on the other side of the trade, to move those asset…
Is Now the Time to Invest in Non-U.S. Stocks?
…gain value in dollar terms when the dollar is falling. “ According to Charles Schwab chief global investment strategist Jeffrey Kleintop, psychology plays a big role: “After a decade, whatever…
The Different Shades of Active Management
…factors that have proven themselves over time. The disadvantage is they deviate further from the index than the reweighting approach, which can lead to poor investor behavior when they inevitably…
Wall Street Greed Exposed by Fractional Shares
…suboptimal ways when it comes to investing, and fractional shares are just another way for discount brokerages to facilitate this behavior.” The article concludes that attempts to democratize the stock…
Making Sense of the Disconnect Between the Stock Market and the Economy
…than what happens this year. Behavior Can Trump Fundamentals in the Short-Term When the stock market gets on a run, we all have a tendency to get caught up in…
The Pros and Cons of Direct Indexing
…off against (at least beyond the small annual minimum). For an investor who doesn’t generate taxable gains somewhere else, direct indexing makes less sense. Behavior Can Be a Big Benefit…
Shiller's Perspective on the Pandemic Stock Market
…a time when genuine news suggests that equity prices should be tanking, not hitting record highs, explanations based on crowd psychology, the virality of ideas, and the dynamics of narrative…