…cites a 2015 Harvard study that showed short-term focus attracts more transient shareholders and is linked to lower earnings growth, higher cost of capital and a lower return on equity….
Search Results for: low-volatility funds
Value Alive or Dead? Debate Rages Among Quants
…return spreads. Low interest rates play a role, since cheap stocks are more tethered to the business cycle and tend to do poorly when rates are low, and the economic…
U.S. Stocks Leave Global Markets Behind
…reopening’s and the potential development of a coronavirus vaccine has lifted the S&P 500 36% from its March low, cutting its losses for the year to 5.8%” the article reports…
A Detailed Look at the Quality Factor
…high asset turnover (indicating efficient use of assets), low financial leverage, low operating leverage (indicating a strong balance sheet and low macroeconomic risk) and low stock-specific risk (volatility that is…
Chris Davis of Davis Advisors Shares Market Insights
…uncertainty.” Volatility can be an investor’s friend, Davis argues: “You make most of your money in a bear market,” he says, “you just don’t realize it at the time.” Lower…
Oxford Economics: U.S. Stocks Expensive
…adding that low bond yields are not sufficient to bolster equity prices. He wrote, “The threat of renewed tariffs adds clear downside risks to already-depressed global trade, and this could…
Excess Returns, Ep. 27: Quality and Low Volatility: The Factors That Shouldn't Work
…tendency of investors to systematically misprice certain types of securities. Factors like value and momentum are easy to explain using this framework, but the outperformance of quality and low volatility…
What GMO’s Ben Inker Says to Buy Instead of Stocks
…funds by more than half because, Inker said, “We were getting very nervous about how much the markets had gone up,” adding, “value stocks at his point are trading at…
The Balance Between What Is and What Should Be
…artificially low both through direct rate cuts and quantitative easing. Many also think that Fed policy has created distortions in the market and detached stock price performance from company fundamentals,…
What Drives Outperformance at Endowments & Foundations?
A new study has found “no ‘systematic evidence’ that funds with dedicated CIOs perform any better than endowments without dedicated CIOs.” This according to a recent article in Institutional Investor….