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…
Tag: Market Volatility
Some Thoughts on Market Panics
By Jack Forehand (@practicalquant) When the market pulled back in early 2018, I had just started writing publicly. It was my first chance to write an article offering my take…
Increased Volatility Encourages Stock Pickers
The uptick in market volatility over the past 18 months is leading some individual investors to believe the market has “reached a point where picking the right stocks matters more…
Swedroe Offers Perspective to Panicky Investors
In an article for last month’s ETF.com, BAM Alliance director of research Larry Swedroe offered some insight on how to weather potential market volatility using a balanced view of the…
Volatility Presents Hidden Risk to Hedge Fund Returns
According to recent research from Robeco Asset Management’s David Blitz: “hedge funds have hitched their wagon to stocks with large equity-price swings—a misguided strategy over the long haul.” These findings…
Stocks are Showing More Volatility
Investors are seeing more volatility than they expected in the stock market this year, according to a recent CNBC interview with LPL Financial’s Ryan Detrick (outlined in CNBC.com). According to…
Buying Stocks with Debt Leads to Market Vulnerability
Analysts warn that the increase in margin loans—borrowing to buy stocks—exacerbated the selloff that occurred at the end of last month and that, if such debt levels continue to rise,…
Are Risk-Parity Funds Responsible for Recent Market Selloff?
Risk-parity funds, intended to balance portfolios based on asset volatility, were partially blamed for the market’s recent price swings. This according to a recent article in The Wall Street Journal.…
Three Things to Remember When Markets Decline
By Jack Forehand (@practicalquant) — “People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.” —…
The Realities of Mean Reversion
By Jack Forehand, CFA (@practicalquant) “Importantly, reversion to the mean in the investment business extends well beyond the results for mutual funds. It applies to classifications within the market (small…