…financial system and consumer. Today, however, Romick says that consumers are in better shape and have more equity than they did a decade ago. Further, mortgage debt is lower and…
Search Results for: low-volatility funds
Value Investing: Has it Gone Out of Style?
…worst decade for low-P/B stocks compared to high-P/B stocks.” According to the article, sector tilts are the culprit for value’s lagging performance. “P/B sorting of the market as a value…
Five Questions: Machine Learning in Investing with Kevin Zatloukal
…low to moderate amounts of data. Deep learning seems to really excel when you have enormous amounts of data. And at the other extreme, techniques like support vector machines and…
Where Has All the Alpha Gone?
…the alpha and beta generated by an investment strategy. For example, the ability to stick with a strategy regardless of its volatility and tracking error would allow you to utilize…
Hulbert: Sentiment a Good Sign for Contrarians
…as measured by the Hulbert Stock Newsletter Sentiment Index (HSNSI) stood at -15.6%, one of the lowest on record, meaning that “the average timer is allocating about a sixth of…
Computer Models are Bearish
…view algorithms as the source of market declines, arguing that these strategies reinforce volatility since they react to price swings by crowding trades. The article concludes that “using mathematical models…
The Cons of Market Cap-Weighting
…so large that they wind up monopolizing the index,” the article says, which can compromise diversification. “Assessing the geographic diversification of the benchmarks that underlie index funds and exchange-traded funds…
Five Questions: Modern Monetary Theory with Cullen Roche
…non-government sector counterparties re-price government money lower and lower in value (ie, rising inflation leading to hyperinflation). We still don’t know the exact causes of inflation, but it’s clear that…
Emerging Markets Are a Buy
…trade deficit to be in real trouble. Further, the article notes, even when EM economies slow down, “they still grow faster than their grind-it-out, mature-economy counterparts.” Despite the volatility, both…
Factor Timing: Skepticism in Order
…low volatility,” but adds that “a healthy dose of skepticism is in order.” The article explains that while such factors reflect a strong long-term record, an effective timing strategy could…