…surprise, but we’re not worried.” He reminds readers of the fact that the U.S. stock market has increased by a factor of 10,000 over the last 140 years despite countless…
Search Results for: factor
Jason Zweig on Why Interest Rates Matter
…Wall Street Journal article, Jason Zweig describes how interest rates are an important factor when determining the intrinsic value of investments (the current value of the cash they are likely…
Factor Investing is Gaining Appeal
…investors toward a different approach referred to as “factor investing”. The idea behind factor investing is to break down securities into the fundamental issues that drive their returns, a methodology…
Fundamentally Sound Stocks Win When Recessions Loom
…group invests using a number of ‘factors’ — that is, fundamental criteria that measure valuation, momentum, financial strength and other stock qualities.” Investing based on these factors tends to lead…
Greenblatt on Why Passive, not Active, is Best for Most Investors
…funds, however, is that the fund performance factor is removed from the equation. That is, because index funds track market benchmarks, dollars don’t move in and out due to underperformance…
Follow Buffett’s Lead and Focus on Value + Quality
…similar value and high quality exposure may look to low costs ETFs, says Kaissar. For instance, “investors can invest equal parts in the iShares MSCI USA Value Factor ETF and…
The Payoff and Perils of Momentum-based Stocks
…and better relative performance. Since the early 1990s, academics, such as a Eugene Fama and Kenneth French, have been studying risk factors, or the performance drivers, within the stock market….
The Long, Long Term Rip Van Winkle Approach
…that that “investment performance is the biggest factor determining the long-term viability of these [pension] plans” and yet most pensions are allocating away from common stocks to higher priced alternatives…
Asness vs. Arnott on Smart Beta, Factor Timing, and Performance Chasing
…necessarily disagree with that point, he reads Arnott to be advocating a timing strategy to be employed along with factor analysis. “Factor timing is very tempting and, unfortunately, very difficult…
Validea’s Market Valuation Report: Large-Caps Looking Ultra-Pricey
…the time going back to 2005. TTM Price-to-Earnings Chart Conclusion: The market is trading at an above average valuation using the TTM PE ratio valuation factor. Large and mega-caps…