Bridgewater’s Ray Dalio Offers Advice to the Everyman Investor

Ray Dalio, chairman of the world’s biggest hedge fund (Bridgewater Associates), recently shared his “best advice for the common investor” with Business Insider’s Henry Blodget. According to Dalio, the article says, most investors can’t compete with professionals and institutions that allocate huge sums of money each year in an effort to beat the market. Instead, […]

Robo-Investing is Gearing Up

As money managers allocate more resources to quantitative model-building, they are also amping up robo-advising services for clients seeking low cost investment alternatives, writes Validea CEO John Reese in this week’s Forbes. Since many of these strategies are outperforming actively managed funds, writes Reese, they are increasingly attractive to investors. He cites the example of […]

Weakening Profit Growth Could Squeeze Margins

As encouraging strong first quarter profit figures come in, investors should keep in mind that earnings of global companies in the S&P don’t necessarily reflect trends in the American economy, according to a recent Wall Street Journal article. The article points out that, on a global basis, year-over-year first quarter results look strong, but underscores […]

Hulbert: Don’t Believe These Old Market Adages

When investors follow popular stock market beliefs and seasonal patterns, the only people who make money are the brokers earnings trading fees from the subsequent buying and selling, writes Mark Hulbert in last week’s USA TODAY. Hulbert, founder of the Hulbert Financial Digest, shared his insights on the following three widely-assumed “strikes” against the market: […]

Environment Could Be Ripe for Small- and Mid-Cap Stocks

Even though their post-election surge has recently cooled, both small- and mid-cap equities remain well-poised in today’s market environment, according to two portfolio managers at Goldman Sachs in a recent Barron’s article. The authors outline the following supporting factors: President Trump’s’ agenda could “benefit small- and mid-cap companies disproportionately” since a large portion of their […]

Index over Active Management Still Requires Discipline

The inevitable periods of underperformance often suffered by active managers—coupled with their relatively high fees—make index investing a more attractive option for many investors. This according to a recent Globe and Mail article by Validea CEO John Reese. Reese writes, “By Mr. Buffett’s reckoning, investors have lost out on $100 billion in fees and underperformance […]

Small Cap Stocks Losing Earnings Steam

The global growth outlook, more than a smoothing of the Trump bump, has resulted in small-cap stocks losing the upper hand—a dramatic shift from what happened right after the election. This according to The Wall Street Journal’s Steven Russolillo. Small-cap stocks (those with market capitalizations generally under $2 billion) spiked by more than 11% between […]

Factor Investing Can Keep Active Management Relevant

Despite its recent troubles, active management remains relevant, but its future “lies in low expenses that allow investors to enjoy a comfortable share of returns,” according to a recent article posted on ETF.com. The article cites comments by Tom Rampulla, managing director of Vanguard Financial Advisor Service, who argues that active managers have to employ […]

Small-Cap Picks for the Long-Term

The small-cap rally that followed last November’s presidential election has cooled, as investors have been sobered by the failed healthcare vote and uncertainty around Trump’s policy agenda, writes Validea CEO John Reese in yesterday’s Forbes. But this could present buying opportunities for the long-term investor. If the new administration’s proposed policies face additional delays, writes […]

Stock-Pickers Beware: Bots Are Here

BlackRock’s March announcement that the firm had reduced its staff of stock pickers to increase its focus on quant strategies may support the consensus that “active management is dying,” but Bloomberg columnist Nir Kaissar argues that “the problem is not that active managers fail to outperform the market; it’s that they keep that outperformance for […]

Bob Doll Says Economy Presents Risk to Stocks

More so than politics, the current economic landscape could pose problems for the stock market, writes Bob Doll in a recent Barron’s article. Nuveen Asset Management’s chief investment strategist contends that, while investors are focused on how political uncertainty could affect equities, “near-term economic disappointment is a bigger issue.” Nevertheless, Doll writes, Nuveen remains constructive […]