Quant Strategies Dominating the Market

The growing popularity of quantitative over traditional investment strategies is causing the “largest gap on record between humans’ and computers’ gross exposure to U.S. equities,” according to a recent Bloomberg article (data provided by Credit Suisse Group AG). The article also provides data from JP Morgan Chase & Co. showing that passive and quant investors account […]

Bill Gross Forecasts Below-Par Economic Growth

In a recent article for Barron’s, fund manager Bill Gross argues that investors have “resorted to ‘making money with money’ as opposed to old-fashioned capitalism when money and profits were made with capital investment in the real economy.” This, he argues, will suppress real economic growth going forward. Gross explains that factors such as the […]

Warren Buffett Has Been Busy

The Oracle of Omaha has had a full dance card lately, as reported by CNBC and The Wall Street Journal: A CNBC article reports that, as of June 22nd, Buffett’s bets on four major airlines came in for a major landing, gaining $174 million from the market’s close the day before (according to SEC filings). […]

Investors May Be Overconfident

Investors are expressing concern about the level of debt companies are carrying rather than focusing only on growth, according to a recent Bloomberg article. The junk bond market, however, doesn’t share the same concern. Analysis by Societe Generale SA shows that, “amid rising interest rates and growing corporate leverage, investors have cast aside debt-riddled companies in […]

Finding a Hidden Gem is Harder Than You Think

Since its 1990’s beginnings as an online bookseller, Amazon has grown into a behemoth that has “irreversibly changed the way consumers shop for everyday goods and read and watch media and entertainment,” writes Validea CEO John Reese in a recent article for Nasdaq. But scoring a hidden gem like Amazon early on, says Reese, is […]

Keys to Success from Bogle, Buffett and Others

In a recent Forbes article, Validea CEO John Reese shared seven keys to investing success from such legends as Warren Buffett, Joel Greenblatt, Jack Bogle and Peter Lynch. Here are some highlights: Time is your friend—take advantage of compounding returns. Impulse is your enemy—emotional investing decisions are a bad idea. Basic arithmetic works—be mindful of […]

Bulls and Bears Both Gaining Ground

The continued climb in global stocks this year is being accompanied by rallies in safe-haven assets such as gold and bonds, according to a recent Bloomberg article. “There are plenty of reasons being cautious is paying off,” the article says, such as “politics in Washington is fractured, tension on the Korean peninsula is rising and […]

Investor Complacency Doesn’t Mean Clear Skies in Market

The market has seen low volatility and years without a major correction, writes Ben Carlson of Ritholtz Wealth Management in a recent Bloomberg article, but this doesn’t necessarily mean investors are complacent. Carlson cites data compiled by Yale professor Robert Shiller that show investor concern regarding market valuations and a “potential market crash” are both […]

Guru Feedback from Barron’s Mid-Year Roundtable

Most participants in this year’s Barron’s Roundtable think “the markets will soon get more interesting, and not in a pleasant way,” according to the publication’s recent summary, which includes excerpts from comments by market heavy-hitters such as Jeffrey Gundlach and Mario Gabelli. “After all,” the article says, “U.S. stocks are expensive, the economy is dullsville, […]

Sensible Stock Picks Based on Fundamentals

While some forms of stock picking can be risky, choosing stocks based on proven strategies and underlying fundamentals can “increase an investor’s odds of enjoying outperformance over time,” writes Validea CEO John Reese in a recent Forbes article. Reese explains that stock picking resides on a continuum comprised of varying approaches and combinations of approaches. […]