By Jack Forehand (@practicalquant) — Bubble has become one of the most overused words in finance. If you read the financial media, you would likely conclude that we are currently surrounded…
Tag: Practical Quant
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.” —…
There is Never a Good Time For Active Management – But Now Might Be One
By Jack Forehand (@practicalquant) — When active managers are struggling relative to their benchmarks, you will often hear the same description of the problem. They will talk about how the current…
The Effect of Quantitative Easing on Investment Cycles
By Jack Forehand (@practicalquant) — “Hindsight gives us the illusion that the world makes sense, even when it doesn’t make sense” — Daniel Kahneman This time is different. If there is…
The Case for Value Stocks
By Jack Forehand, CFA (@practicalquant) — Value stocks have lost their mojo. After an extended period from 2000 to 2007 where they outperformed growth stocks by a wide margin, they…
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…
You Can’t Time The Market – But Many People Should
By Jack Forehand, CFA (@practicalquant) — There are few topics that are more controversial in the stock market than market timing. Most long-term investors will tell you that market timing…
The Most Expensive Investing Factor
By Jack Forehand, CFA (@practicalquant) — Factor investing is a long-term pursuit. Successfully following a factor-based approach is a function of studying what works over time, implementing it in a…
What BitCoin Can Teach You About Investing
By Jack Forehand, CFA (@practicalquant) — I am unfortunately not one of the people who has enjoyed the two thousand plus percent return of BitCoin this year. I have spent…
The Dangers of Data
By Jack M. Forehand, CFA (@practicalquant) — “If you torture the data long enough, it will confess.” – Ronald Coase “He uses statistics as a drunken man uses lamp posts—for…