…we measure using normal earnings. Value is not a factor.” Pzena conducted an analysis of 14 U.S. recessions (dating back to the Great Depression) and 8 recessions in Japan since…
Search Results for: factor
The Life Cycle of Investing Factors
…Factors typically work because there is some reason that investors avoid the types of stocks selected by the factor. For example, stocks selected using the value factor are typically riskier…
The Birth, Growth & Death of Investing Factors w/ ReSolve Asset Management's Adam Butler
…We discuss: The life cycle of investment factors and why the factors that have the strongest evidence to support them may be the most vulnerable to having their premiums reduced…
When Quantitative Becomes Discretionary
…with that one factor. As a result, his value model in the most recent edition uses a composite of factors. That process of evolving a strategy over time and using…
Is Passive Investing Distorting the Market?
…trend is likely to continue as a result of the rise of ETFs, investors’ focus on fees, the inconsistency of active manager outperformance, and numerous other factors. That is where…
No Value Explanation for ‘Exorbitantly Priced’ Tech Stocks, Says Research Affiliates
…change the value calculation of companies (like the FANGs) with high levels of research and development expense—assets which are typically not included on company balance sheets and therefore don’t factor…
The Size Effect Never Existed
While some young academics are trying to increase the list of investment factors, “grizzled veterans are concluding that the small-company effect does not, after all, exist.” This according to a…
Why the S&P 500 is an Active Portfolio, and Other Observations on the Stages of Active Management (Ep. 44)
…active portfolio; The various approaches to fundamental indexing; The one type of active management that should be avoided at all costs; The pros and cons of factor investing; Whether the…
4 Facts to Know about the Election and the Market
…results to be a “determining factor in the broader direction of the financial markets over the long run.” “When it comes to your portfolio,” the article says, “ensure your financial…
Investing’s Real Magic Formula: Compounding
…shown, when it comes to achieving your long-term investing goals, time in the market often trumps the annual rate of return and most every other factor. Justin J. Carbonneau is…