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…
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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…
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…
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…
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,…
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 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…
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…
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…
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…
In his latest quarterly letter, GMO’s always interesting Jeremy Grantham lamented the refusal of U.S. equity valuations, and the stubbornly high profit margins that have…
Because the American equity markets have enjoyed an abnormally long period, – historically speaking, – of relative outperformance versus the rest of the global marketplace,…
As an adviser who allocates a large portion of client assets to low-cost index-type ETFs, and who manages a fair amount of my own portfolio…
Last week, I discussed how the key factors of diversification and dynamism explain, if not justify, the premium valuation that US equities enjoy over most…
Fascination with the stock market has become a national obsession, not least because the financial well-being of the majority of Americans depends on a healthy…