Where “I Bought It For The Dividend” Went Wrong
The majority of the time, when you hear someone say “I bought it for the dividend,” they are trying to rationalize an investment mistake. However, it is in the rationalization that the “mistake” is compounded over time. One of the most important rules of successful investors is to “cut losers short and let winners run.”
How Market Crashes Happen Without More Bad News
Here’s why the market crashes even without more bad news, like it did in October 1987 and from late 2007 through March 2009. But this time is different because there is a new set of actors on the stage, exacerbating the problem.
A Comparison of Passively Managed, Small-Value Funds
Small-value investors can choose between index funds and passively managed, structured products. While index funds have lower costs, they don’t offer the same degree of exposure to the small-cap and value factors. Here is how that difference has played out in three prominent funds over the last eight years.
Why it is Crucial to Use the Right Time Frame
We have a modest economic calendar. Only two reports will provide any hint about the coronavirus economic impact. The punditry will not be hampered. Without meaningful data, speculation blossoms. There is one idea that could help both your interpretation of data and your investment decisions.
Recent Market Action A Value Investor’s Perspective
For some time now I have been pointing out that the stock market as measured by the S&P 500 has become moderately overvalued. However, even more to the point, I still believe that to be true even after the price corrections we have experienced recently as a result of the coronavirus.
Viral Collapse of Economic Optimism
Those of you who have been with us recently know that we are calling the recent decline in value stocks a capitulation in a value investing depression. The coronavirus has sucked all the economic optimism out of a market which has hugged tightly to large growth companies providing reliable sales or earnings momentum.
After Booming 2019 for Stock Indices, U.S. Equity Markets Going Back to Fundamentals
Mike LaBella takes a deep dive into the state of the U.S. equity markets and why investors should be paying attention to dividend paying equities that have attractive valuations and sustainable high yields.
K2 Advisors: First Quarter Hedge-Fund Strategy Outlook
Pricing dislocations in Europe, performance dispersion across the credit spectrum and shifts in the political landscape should likely provide abundant opportunities for select hedge strategies in the year ahead, according to K2 Advisors. The team shares some macro themes and questions its focused on, and shares its outlook for various hedge strategies.
Are Investors Too Complacent?
The economic calendar is very light and interrupted by the mid-week holiday. We can always see volatility when volume is low, but many market participants will be on an extended holiday. This includes much of the A-team punditry, but someone will be left to fill the airtime.
Alternative ETFs Have a Bright Future
A recent study by New York Life highlighted rising interest among institutional investors in alternative ETFs, which can help to reduce fees and offer better liquidity than traditional hedge funds. ETFs have other benefits as well: transparency, flexibility to efficiently increase and decrease target allocations, reduced manager oversight, and reporting simplicity.