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Thursday, May 23, 2019
It is fairly common knowledge in financial circles that equal-weighted portfolios tend to outperform portfolios weighted by market capitalization, whether the portfolio is composed of U.S. stocks, foreign stocks, or emerging market stocks. As Tobias Carlisle has written (citing research by […]
Next month marks the beginning of the 1997 Asian financial crisis, which saw the equity markets of several nations plunge more than eighty percent in less than two years, a drawdown the severity of which American investors have not experienced […]
It is strange to contemplate, but we are now just a few months removed from the tenth anniversary of the previous market top of October 9th, 2007. Over the next year and a half, the ensuing bear market would go […]
In “Relative Equity Valuations, Diversification, and Creative Destruction,” I argued that one of the main attributes of the U.S. equity market, – one that warrants it a premium to other global markets, – is its dynamism, which almost ensures that […]
I have written a few times why comparing valuation metrics for the U.S. equity market and most others around the world is a futile exercise, mainly because the U.S. market is significantly different in terms of its sector composition, and furthermore […]
Going back to December of 1974, value stocks have outperformed growth stocks by an average of more than 200 basis points per year.* Yet over the last ten years, growth stocks have outpaced value stocks in every major segment of […]
The 20th century ended with a bang with U.S. equities peaking on March 24th, 2000 with the apex of the tech bubble. Only in the last few years have major market averages such as the Dow Jones Industrial Average and […]
Going back to December of 1970 (the earliest for which I can find data), the Wilshire 5000 total return index has posted 10.65% annualized returns (through April of this year), versus 10.4% for the MSCI Europe total return index. Given […]
The trend toward “passive” investing – by which I mean investing in low-cost index-type funds that own broad swathes of the investable marketplace – is certainly a phenomenon that has many more years to play out. Investors, frustrated with the […]
Of Dollars and Data shared an interesting post titled, “Bad Investment Results? Your Birth Year May Be to Blame: How Luck Influences Investment Success and What To Do About It.” As the title implies, the post largely explains how being […]
