Although 2019 marked a year-long rally for the stock market, a recent Barron’s article notes that, “underneath the broad optimism,” various factor groups moved in and out of favor along…
Search Results for: factor
Morningstar Study: Which Investment Factors Work?
…“because these factors cannot be purchased. They come attached to stocks, which in turn offer exposures to other factors.” Here are highlights of the findings in order of performance: Volatility:…
Ang Warns About Value
BlackRock’s managing director Andrew Ang is urging investors to be cautious in how they return to the long-underperforming value factor, according to a recent article in Institutional Investor. Although several…
Lessons From Our Most Read Five Questions Interviews
…an hour and half on the phone with me and we published the interview in two parts. We talked about a variety of topics including factor investing, behavioral finance, and…
New Link Between Stocks and Bonds reflects Change in Market
…“Japanification” of the U.S. economy might be gravitating toward the safety of long-term bonds and forcing yields down. The increased use of factor investing might be accentuating the link between…
Excess Returns, Episode 3: Six Common Misconceptions About Factor-Based Strategies
…links off to articles and sources discussed during the podcast: Jack’s article: Six Common Misconceptions About Factor-Based Strategies Value Stocks and Struggles Probability of Factor Underperformance Importance to comparing to…
When Warren Buffett Thanks You for “Client Alpha”
…It is probably more important than any other factor in enabling a manager to take a long-term time frame when the world is putting so much pressure on short-term results.”…
A Loser’s Game for Active Managers
…on to bigger positions, active portfolios become exposed to the momentum factor—“the tendency for winners to keep winning and losers to keep losing.” While over time this has led to…
Excess Returns, Episode 2: The Rising Bar for Active Management
The market has always been tough to beat, but the ability to investors to gain inexpensive exposure to factors like value and momentum has made the job of active managers…
The Danger of Overscrutinizing Out of Favor Investment Metrics
By Jack Forehand (@practicalquant) — No investing factor has been maligned more than the Price/Book in recent years. In a period where value in general has performed very poorly, the Price/Book…