Most Recent Stingy News
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| How flows change factor performance |
| 05/20/25 2:44 PM EST | Value Investing |
| "What I find particularly interesting, though, is that the study also estimates cross-factor impacts. If more money flows into momentum stocks, the expensive stocks tend to get more expensive while the cheap stocks tend to get cheaper. This should increase the return potential for value investors. Indeed, the chart below shows that if 1% of the total market flows into momentum portfolios, then the return outlook of the value factor increases but 0.6% per year. Similarly, the return outlook for small cap investors increases as well, while quality factor portfolios see their return prospects diminished because quality factor portfolios have large overlaps with momentum factor portfolios." |
| More Value Investing: US value trading at a discount |
| Just inside the zone |
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| A price on mental freedom |
| 05/20/25 2:43 PM ESY | Behaviour |
| "Today, I don't make active investments because you can't put a price on mental freedom. What I've realized about myself (and many others I've spoken to) is that when you buy an active investment like an individual stock, that investment consumes a lot of your attention." |
| More Behaviour: Housel on the decline |
| Don't push it |
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| Buying the dip wins again |
| 05/20/25 2:42 PM EST | Markets |
| "Retail investors have won again. When trade tensions flared in early April and about $6.6 trillion in market value vanished from US stocks in just two business days - the fifth-worst two-day drop since the S&P 500's creation in 1957 - they didn't panic. Instead, they did what they've learned to do over the past 15 years: They bought the dip. Six weeks later, the US stocks benchmark has not only recovered but surpassed its pre-tariff levels, delivering a gain of about 17% from the lows to those who kept their nerve." |
| More Markets: Profitability retrospective |
| Mr Market rules |
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| Profitability retrospective |
| 05/20/25 2:40 PM EST | Markets |
| "rofitability subsumes all the quality factor, explaining both the performance of the strategies the investment industry market and the factors that academics employâ€"none of the quality factors generated significant positive alpha relative to profitability, the other Fama and French factors, and momentum. The pricing of the quality factors was primarily through significant positive loadings on profitability. Thus, instead of focusing on various quality metrics, investors can concentrate on a company's ability to generate profits." |
| More Markets: Mr Market rules |
| Beanie babies + bimetallism |
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| Will you need long-term care? |
| 05/20/25 2:38 PM EST | Retirement |
| "A recent update of these data show that only about a fifth of retirees will need no assistance at all during their lives and a fifth will need extensive services. The remaining 60 percent of seniors will have either low (25 percent) or moderate care needs (37 percent)." |
| More Retirement: Tasting retirement |
| Set for life? |
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| The rule of law |
| 05/20/25 2:33 PM EST | Crime |
| "It is only under the shelter of the civil magistrate that the owner of that valuable property, which is acquired by the labour of many years, or perhaps of many successive generations, can sleep a single night in security. He is at all times surrounded by unknown enemies, whom, though he never provoked, he can never appease, and from whose injustice he can be protected only by the powerful arm of the civil magistrate continually held up to chastise it. The acquisition of valuable and extensive property, therefore, necessarily requires the establishment of civil government." |
| More Crime: Paid to not understand it |
| Avoiding bad guys |
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| Mr Market rules |
| 05/12/25 3:37 PM EST | Markets |
| "The curious thing about financial markets is that they do not respond to what most of us would regard as news." |
| More Markets: Beanie babies + bimetallism |
| US treasuries, deficits and credibility |
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| Beanie babies + bimetallism |
| 05/12/25 3:27 PM EST | Markets |
| "Beanie Babies in the 1990s were a classic bubble involving small stuffed animal toys. The bubble featured a seemingly scarce commodity and an exciting new trading and communications technology, the internet. Early buyers were richly rewarded by price increases, attracting more buyers. Burton and Jacobsen (1999) estimate that the annual returns on Beanie Babies were between 159% and 176% from 1994 to 1999. But the bubble collapsed after 1999, perhaps because Beanie Babies offered no vision of social justice." |
| More Markets: US treasuries, deficits and credibility |
| Suffering in private |
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| US treasuries, deficits and credibility |
| 05/12/25 3:21 PM EST | Markets |
| "The damage has been done. How much? Aside from higher yield and a lower stock market it's hard to measure. You also have constant attacks on institutions. The next couple months will be very noisy. You have tariffs and trade talk, tax bill, inflation, a massive unsustainable deficit and an economic slowdown. Followed by midterms elections. Mistakes have been made and that increased pain for the people. This is about a country's reputation." |
| More Markets: Suffering in private |
| Got diversification |
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| Go for the gold |
| 05/12/25 3:19 PM EST | Gold |
| "There is no math that an investor can do to determine an appropriate price for gold. It's worth only what other investors are willing to pay for it, and that, in my view, is why its price can fluctuate so widely." |
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| Do it for the kids |
| 05/12/25 3:17 PM EST | Books |
| "Welcome to the Jonathan Clements Getting Going on Savings Initiative and the accompanying book, The Best of Jonathan Clements: Classic Columns on Money and Life. The savings initiative aims to get young adults started in the financial markets with $1,000 contributions to Roth IRAs, with those contributions funded by both direct donations and the royalties from the book. The book consists of more than 60 of my old Wall Street Journal columns." |
| More Books: The trading game |
| Die with zero |
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| Berkshire Hathaway 2025 AGM |
| 05/05/25 7:26 PM EST | Buffett |
| "Warren Buffett presides over the 2025 Berkshire Hathaway annual shareholder meeting" [video] |
| More Buffett: Cash |
| Warren Buffett at BRK's AGM |
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| Be minimally extractive |
| 05/05/25 7:22 PM EST | Thrift |
| "The late Jack Bogle, founder of Vanguard, did more to help the individual investor than anyone in history. And since this week marks the 50-year anniversary of Vanguard's founding, I thought it would be nice to illustrate the unrivaled impact that Bogle had on the investment industry." |
| More Thrift: Advice for the kids |
| Spending rules |
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| Off the hook |
| 05/05/25 7:16 PM EST | Government |
| "After years of riding the wave of easy money and effortless asset appreciation, many sophisticated investors were caught off guard by the market's negative response. While tariffs may have been the catalyst for the recent decline in stock prices, they certainly aren't responsible for this cycle's elevated valuations. Investing in an asset bubble carries tremendous risks. Pay up and play along, and you assume the risk. We believe prices paid, not tariffs, will be the main source of investor losses when the current market cycle ends." |
| More Government: Trudeau was a poor steward |
| Negative trading in congress |
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| Suffering in private |
| 05/05/25 7:14 PM EST | Markets |
| "Can you make money in a private investment fund? Probably. But I see it as an uphill - and unnecessary - battle." |
| More Markets: Got diversification |
| The Kardashian of money |
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| Got diversification |
| 05/05/25 7:13 PM EST | Markets |
| "Diversifying equity allocations outside of the United States seems like a prudent move in this macroeconomic environment, and, given valuations, international outperformance is a trend that could continue for years to come." |
| More Markets: The Kardashian of money |
| Quantitative instability |
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| The Kardashian of money |
| 05/05/25 7:12 PM EST | Markets |
| "the basis of this wealth is a self-perpetuating set of beliefs, as opposed to an independently valuable economic function." |
| More Markets: Quantitative instability |
| A quantum of confusion |
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| A historical analysis of tariffs |
| 04/27/25 2:!4 PM EST | Taxes |
| "Our analysis suggests that, over the long-term, tariffs have had relatively minor impacts on GDP, inflation, and equity markets. Perhaps most surprisingly, they've had relatively minor impacts on trade imbalances. Perhaps the best way to think about tariffs, then, is simply as a tax like any other." |
| More Taxes: Tariffs will not make america great |
| Trading arguments |
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| No exception |
| 04/27/25 1:44 PM EST | World |
| "While it may be hard to remember, there have been multi-year periods when international stocks have outperformed the U.S. market. In fact, a chart of domestic vs. international stocks looks a little like a sine wave, with performance alternating over time. For that reason, I continue to recommend an allocation to international stocks." |
| More World: Germans are reluctant to invest in stocks |
| War on the world |
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| Tasting retirement |
| 04/27/25 1:42 PM EST | Retirement |
| "I'm trying my hand at retirement. It isn't going so well." |
| More Retirement: Set for life? |
| Never root for a recession |
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| Quantitative instability |
| 04/27/25 1:40 PM EST | Markets |
| "Fire sales by quantitative funds had a significantly larger destabilizing effect on markets compared to traditional mutual funds. For an equivalent-sized fire sale, the market impact of quantitative funds was more than eight times greater. In addition, it takes between one and three months longer for stocks sold by quantitative funds to fully recover." |
| More Markets: A quantum of confusion |
| Buy the bottomless pit |
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