AQR Capital Management founder Cliff Asness wasn’t a big fan of value stocks, but he changed his mind last fall, feeling that they are now due. He is still waiting patiently. For a couple of magical weeks last September, value stocks were all the rage in the financial media when it was discovered that value […]
It often doesn’t take much to scare financial markets, and the way that they interpreted Fed Chairman Jay Powell’s comments on the prospects of negative interest rates proves this. The very idea of a central bank lending money to banks at negative interest rates is a very recent one, and one that isn’t even that […]
Pointing to several current issues that by themselves would normally weigh on stocks significantly, Goldman sees us giving back 18% of recent stock market gains over the next 3 months. The moment stocks started to rebound from the 35% nosedive caused by the coronavirus outbreak and its economic response, pundits started to line up to […]
During the last financial crisis, the housing market was ground zero. It’s much more on the periphery this time, and the effects of the lockdown will be more like a stall than a crash. The 2008 financial crisis was brought about entirely from the collapse of the housing market, or more specifically, the collapse of […]
The standard advice that investors get has them diluting their stock returns by balancing with bonds. We may want go the other way instead, to double down on our stock returns. Very few investors think all that much about what they invest in. They often will rely on professional advice, whether this be from a […]
AMD outperformed every other stock in the market last year by a huge margin. While this scares some people, especially in the face of a big pullback, AMD continues to shine. There is a strong belief among many investors that stocks that go up a lot are ripe for a correction, where they somehow see […]
Legendary hedge fund manager Paul Tudor Jones, like the majority of investors, believed that gold was the best hedge against inflation. He’s changed his mind. Paul Tudor Jones knows his stuff, and is not only one of the most famous hedge fund investors in the world, he’s also widely regarded as one of the best. […]
April’s job numbers came in on Friday, and 20.5 million losing their jobs during the month should concern us plenty. Neel Kashkari of the Minneapolis Fed says it will get much worse. Minneapolis Federal Reserve President Neel Kashkari certainly qualifies as one of the Fed’s most outspoken members, and readers might remember our doing an […]
Investors place huge sums of money into what are called value funds, hoping that these funds will outperform. It’s not enough to observe their failure, as we need to understand why. The concept of intrinsic value has always been one that has served to confuse a lot of investors. It’s not that the concept itself […]
While stocks do tend to move together a lot, and most investors seek to spread their money out among a wide variety of stocks, stock picking is becoming even more important. There is something about being selective about choosing investments that turns off the great majority of investors. While it is natural to be intimidated […]