By Jack Forehand, CFA Let’s pretend we could turn back time to January 1st of this year. What if I gave you the following series of facts and asked you…
Tag: Practical Quant
The Different Shades of Active Management
Active management deserves all the criticism it gets. After all, over 80% of equity managers underperform their benchmarks over the long-term and active managers charge vastly higher fees compared to…
Making Sense of the Disconnect Between the Stock Market and the Economy
We are currently in one of the most difficult economic environments many of us will see if our lifetimes. Even though the unemployment rate has fallen from its high of…
The Pros and Cons of Direct Indexing
ETFs have been the fastest growing product in the asset management industry. Since 2003, their assets have increased by over 30 times and currently stand above $5 trillion. And that…
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…
The Danger of Learning From Your Mistakes
By Jack Forehand, CFA One of the major changes I have made in my life in the past few years is that I have significantly increased my focus on learning. In…
Is the Price/Book Ratio Dead?
By Jack Forehand, CFA The Price/Book has probably been the most important valuation ratio of the past century. If you look at the academic research that supports value investing, you won’t…
The Human vs. The Quant
By Jack Forehand, CFA I have always thought I am a better discretionary investor than I am. I think I can predict where the market is headed. I think I…
A Detailed Look at the Quality Factor
By Jack Forehand, CFA There is probably no investing factor that makes more sense to your average investor than quality. We all want to own great companies – think Apple, Microsoft,…
The Balance Between What Is and What Should Be
I like it when things work out the way they should. It’s great when good things happen to people who deserve it. It’s great when the outcome of any situation…