It has been said that the most dangerous words in investing are “this time is different”. But sometimes a confluence of factors come together to significantly change the character of…
Tag: Federal Reserve
Excess Returns, Ep. 36: Have the Fed, Narratives and Passive Flows Broken Fundamental Investing?
Valuing a company (or the market in general) typically involves looking at its price and judging that price relative to its current and projected future fundamentals. But some have argued…
When Fundamentals Don’t Matter
By Jack Forehand (@PracticalQuant) Valuing companies can be a challenging process. While it is commonly accepted that the value of a company is the present value of its future cash…
Druckenmiller ‘Humbled” by Market Rebound
In a recent CNBC interview, hedge fund manager Stanley Druckenmiller said that the market’s comeback in recent weeks has “humbled” him and that he underestimated the power of the Fed.…
Excess Returns, Ep. 28: The Danger of Focusing on What Should Be and Missing What Is
We all have our beliefs about the way that things should work in investing. When the market gets overvalued, we think it should go down. When value stocks struggle for…