Fundamental analysis, model portfolios and stock screens based Buffett, Graham, Lynch and other Wall Street Legends. Check out the videos.

In these videos, Validea founder and CEO, John Reese, walks you though the research and tools available on Validea.com. On Validea, you can see how over 6,000 stocks stack up based on 12 different guru strategies. Each model gives you a final score and tells you why the particular stock you are interested in passes or fails […]

Sectors are Decoupling After Election

As the stock market rally continues to chug along in reaction to the Trump victory, sectors are shifting away from the lockstep movement that has been the norm over the last seven years, says The Wall Street Journal. Andrew Wilkinson, chief market analyst at Interactive Brokers, explains, “You’re seeing pressure on different sectors. In a […]

Does the Market Trust Trump?

“Reading market movements—such as the steep rise in stock prices in the early post-election days as well as the subsequent ups and downs—requires a Rosetta stone,” writes Harvard economics professor Sendhil Mullainathan in a recent New York Times article. An increase in stock prices, he writes, “signals an expected increase in future profits” for investors, […]

Dow Prediction is Getting Close

Back in 2012, when the Dow Jones Industrial Average was at 12500, Seth Masters of asset manager AllianceBernstein predicted that it would reach 20000 by the decade’s close. This according to Steven Russolillo in this month’s Wall Street Journal. Masters, who has a history of bold forecasts over his 26 years at the firm, told […]

Bond Bull Market on Borrowed Time says Miller

The post-election drop in bond prices is pointing toward an end to the decades-old bull market in fixed income, says investor Bill Miller in a recent CNBC article. The founder, chairman and CIO of Baltimore-based LMM says that the money leaving bonds will likely be channeled into the stock market. “The over-investment in bonds is […]

Jack Bogle on Indexing: “Math is Math”

Back in 1976 when John “Jack” Bogle started the first index fund, his goal was to “capture the overall market’s return at much lower costs than the stock picking fund managers who so often failed to match it,” writes Bloomberg’s Michael Regan in a recent interview with the octogenarian and retired head of Vanguard. The lengthy […]

Housel on Competitive Advantage

Morgan Housel recently joined Collaborative Fund, a New York-based venture capital firm established in2010. In a blog posted earlier this month, he shares his insights on the importance of competitive advantage in business and offers five characteristics to ensure its sustainability: The ability to learn faster than your competition: “The world is filled with smart […]

The Frailty of Market Predictions

The unexpected Brexit vote and Donald Trump’s presidential election victory both occurred despite overwhelming predictions to the contrary, writes John Reese in a recent article for The Globe and Mail. The CEO of Validea illustrates how forecasting in the world of investing is “equally fraught with unpredictable outcomes despite seemingly reasonable expectations.” Reese supports his […]

Small-Caps on the Upswing

As all eyes continue to be on the president-elect, questions abound regarding if and how he will implement the changes he championed on the campaign trail. In the meantime, however, an article in this week’s Barron’s argues that his election has proved a shot in the arm for small-cap stocks. That article asserts that, since election day, […]

Index Fund Bubble on the Horizon

Index funds have been “bumping up” the prices of all stocks in the major indexes as managers put “record amounts of shareholder money to work,” says an article in last week’s Institutional Investor. This has created a bubble that could spell trouble for passive investors but present opportunities for active ones. John Rogers, CEO of $2 […]

Howard Marks on the Post-Election Markets

In last week’s Barron’s, Oaktree Capital’s Howard Marks reflected on the presidential election and offered a wealth of insight regarding both its complexities and its multi-layered and far-reaching implications. With specific regard to the markets, Marks posed the question: “How could the expectation of a Clinton victory make stock prices rise, and then the reality […]

Morningstar Ratings and Future Fund Performance

In a recent paper published by the firm’s quantitative research team, the Morningstar Rating, also known as the “star rating”, is summarized and evaluated with respect to accuracy. Morningstar now publishes star ratings on more than 217,000 managed investments across 72 countries. The rating system was introduced in 1985 to help investors and advisors better […]

Grantham: Current Market is an “Anti-Bubble”

The U.S. market is unlikely to “go bang” the way some have in the past, says Jeremy Grantham, chief investment strategist and co-founder of asset management firm GMO. In a recent Barron’s article, Grantham argues that we are not facing a “classic bubble, not even close.” In Grantham’s opinion, it is more likely that a […]

Quant Strategy Pros and Cons

Anthony Ledford, chief scientist at U.K.-based investment management firm Man AHL, has mixed feelings regarding the hype around quantitative models and their potential impact on the hedge fund industry. In a recent Bloomberg article, Ledford (who holds a Ph.D. in mathematics) says, “There is some real science here, but it’s not the way it’s been […]