Stimulus Activities, Consequences, and a Shift to ‘Value Investing’
A recent article in Investing.com outlines some of the consequences of the governments’ economic stimulus activities. Here is a summary of the article’s main points: “One consequence of spending too…
Bernstein: Investors Have Forgotten 2008 Pain
In a recent interview with CityWire, William Bernstein– a neurologist-turned-financial-theorist—shares insights on why we may in a period of radical market dislocation. Here are key takeaways from the interview: The…
Everyone is Influenced by Behavioral Biases
A recent article by Morningstar offers findings of a recent study showing that most Americans are overconfident and argues that investors “tend to make snap decisions and irrational—sometimes destructive—mistakes, based…
Bonds Useless as Hedge to Stocks
The role of bonds as a “shock-absorber” and safe haven has “eroded as the fear of inflation becomes a common denominator for both stock and bond investors.” This according to…
The Balance Between Edge and Conviction
Developing an edge in the stock market has always been a significant challenge. The collective wisdom of the market is typically correct, and that leads to very efficient asset pricing…
Fed Warning on Danger of Increased Investor Risk Appetite
Fed Governor Lael Brainard said in a recent statement that “vulnerabilities associated with elevated risk appetite are rising,” adding, “the combination of stretched valuations with very high levels of corporate…
The Future of Investing: GameStop, Artificial Intelligence and Social Media
The recent GameStop saga—in which “an army of amateur investors spurred the value spike” after organizing on the social networking site Reddit—sends the clear message that social media can drive…
Finding Quality Value Stocks With Joseph Piotroski's F Score Methodology
Research shows that value stocks can generate an excess return because the market tends to overestimate their problems, and value investors benefit when it realizes that. But despite that being…