By Jack M. Forehand (@practicalquant) — Factor investing requires a lot of patience. Despite the fact that research shows that many factors can produce outperformance over long periods of time,…
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The Biggest Failure of the Investment Management Industry
…the identification of the factors that lead to market outperformance (and their deployment in a low-cost way), are both major positives for investors. Our Biggest Area of Failure So the…
Some Thoughts On Improving the Predictive Value of Morningstar's Ratings
…very last sentence is the key, which is why I’ve emphasized it. Source: http://www.cfapubs.org/doi/full/10.2469/cp.v30.n3.1 At Validea, we do a lot of performance evaluation for the factor-based models we run, and…
Bob Doll Says Bull Market is Likely to Continue
…he says, earnings are the key factor. While he expects they may continue to rise through the end of this year, he argues that “the pace of earnings growth may…
Are We Partying Like its 1999?
…learning from the past is something we all should do, as long as the past is put in the proper context. As a factor-based investor who focuses on value and…
Shift to Passive Investing May Not Influence Stocks Like Some Think
…index buying really is a huge factor in driving up stock prices, this model would argue that Warren Buffett and shareholders of Berkshire have been some of the biggest beneficiaries…
Value Investing Performance Varies Depending on Measure
…return of 7.10%.” It explains, however, that price-to-book is only one factor to consider and that, over the same ten-year period, the use of price-earnings ratios has been more effective….
Podcasts of the Week: Pysh, Arnott & Thaler
…time. Factor timing is also a hot topic these days. The issue of whether you can enhance returns by adding exposure to factors that are cheap historically and reducing exposure…
What Passive Investing Might Mean for Stock Pickers
…that new research is showing “how the rise of passive investing—tracking a basket of securities rather than picking individual ones—is changing the makeup of markets.” Investors are reviewing factors such…
Lessons From Over a Decade of Managing Money Using Quant Strategies
…on everything I’ve learned, I’m pleased to say that the principles I initially believed have proven to be mostly correct. These include; following factor-based strategies with strong historical track records,…