…prefers to use real earnings yield because, he says, “inflation is absolutely crucial for long-term investors. It’s the most important macro factor.” Based on the real earnings yield metric, says…
Search Results for: factor
Industries Concentrate and Investors Profit
…the average age of companies in the S&P 500 was 60 years in the 1950s, but now is only 20 years. The Concentration Factor One quantitative method for determining if…
Value Returns Could Improve, But Nobody Can Predict When
…quantitative analyst at investment firm AJO. But Andrew Ang, head of factor-based strategies at BlackRock, argues that, on the whole, “there is little relationship between interest-rate movements and value premium,…
What Gambling and the Oakland A's Can Teach You about the Importance of Process
…to continue to work going forward is key. This is a big benefit of factor-based approaches over funds managed by people. Factor models that are followed rigorously guarantee what was…
A Different Definition of Risk
…Measuring risk relative to this pain allows an investor to see just how bad the pain might be. Some of the best performing factor-based strategies we have seen only outperform…
Boring Stocks are Winning
…of price swings—tends to beat the market over time,” the article states. “The factor’s performance in the U.S. has lagged lately, but calm stocks elsewhere have picked up the slack.”…
Lessons on How to Prepare for an Unexpected Crisis
…help teams prepare for the unexpected.” Know something about everybody else’s job. Researchers found that a critical factor that enables teams to handle surprises is that “members are familiar with…
Factor Investing Tips
…comments from Gregg Fisher, founder of Gerstein Fisher (which managed $3 billion using a factor-based approach), who say investors should “shift their factor mixes as time goes on to reduce…
The Market May Not Be As Expensive As You Think
…its historical average prior to the correction, so this certainly has not dramatically changed the valuation picture on its own, but it is a contributing factor. The second thing that…
Are U.S. Capital Markets as Healthy as They Look?
…tune of $3.6 trillion. IPOs have also dropped off considerably, the article points out, citing regulatory impediments such as Sarbanes Oxley as a contributing factor. Another cause, it says, is…