Most Recent Stingy News
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| Valuation indicators to ignore |
| 01/19/25 4:08 PM EST | Markets |
| "Here I review four commonly used measures of market overvaluation that you can safely ignore. All four measures say the U.S. stock market is overvalued today. The market might well be overvalued today, but these measures are not good reasons to say so." |
| More Markets: 2024 in factors |
| Stock market history, illuminated |
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| Wealth or inflation |
| 01/19/25 4:06 PM EST | Value Investing |
| "Assuming financial assets remain inflated, we expect more companies will discover the rewards associated with higher-margin premium offerings. As businesses shift their mix to accommodate the higher end, we believe wealthy consumers will increasingly become the economy's price setters. Moreover, additional gains in household financial assets could lead to further increases in home prices and shelter inflation. If the bond market didn't have enough to worry about, we believe the days of booming asset prices coexisting with tame consumer prices are long gone. Asset inflation is leaking." |
| More Value Investing: Simple formulaic investing |
| Bargain, value trap or something in between |
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| Problems with passive investing |
| 01/19/25 4:04 PM EST | Indexing |
| "Passive investing has absolutely revolutionized the investment landscape for individual investors. Not only has it dramatically lowered the costs of asset ownership, but it has done so while delivering strong returns. What began as a radical idea to buy the overall market without worrying about picking the winners now accounts for 57% of all equity fund assets and over $13 trillion." |
| More Indexing: Bet on low costs |
| Disappearing index effect |
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| 2024 in factors |
| 01/19/25 4:02 PM EST | Markets |
| "Looking at some of the biggest drivers of returns, the global equity factor had higher returns and lower volatility versus the historical average. Similarly, the large size factor, high-investment (AI-driven), and high turnover (lots of trading activity) all did quite well for style factors. Momentum and quality did well but were largely in line with history while value lagged." |
| More Markets: Stock market history, illuminated |
| How big is the equity risk premium? |
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| Trudeau was a poor steward |
| 01/13/25 4:32 PM EST | Government |
| "The fact is, no one seems to really know what's behind Canada's low productivity growth. Observers agree that low rates of corporate investment, including investment in R&D, are the problem, but no one seems to have a good explanation for why companies aren't investing. And no one seems to know whether Canada's especially bad performance since the pandemic is just an exacerbation of the existing negative trends, or whether some new problem has cropped up in addition." |
| More Government: Negative trading in congress |
| Making life worse one bulb at a time |
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| Seven pillars of market bubbles |
| 01/13/25 4:20 PM EST | Behaviour |
| "Charles Mackay wrote the lurid bestseller Extraordinary Popular Delusions and the Madness of Crowds, which discussed many historical bubbles. Despite publishing his book in 1841 decrying bubbles, in 1845 Mackay himself was caught up in the British railway bubble and advocated buying shares." |
| More Behaviour: Why we struggle |
| Self defense |
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| Spending it |
| 01/13/25 3:53 PM EST | Retirement |
| "Retirees can pick from a host of withdrawal strategies, including the five popular choices listed below. You'd likely fare just fine with any of the five strategies - but that doesn't mean you shouldn't pick carefully." |
| More Retirement: Before you quit |
| Jonathan Clements' financial plan |
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| Stock market history, illuminated |
| 01/13/25 3:43 PM EST | Markets |
| "What particularly interests us is that - until the last decade - European and US stock markets behaved very similarly over many, many years. Given that many constituents in both markets are global businesses selling many similar products and services multi‐nationally to similar regions, countries and customers, this made sense." |
| More Markets: How big is the equity risk premium? |
| Chasing past performance |
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| The TSX's gains over almost 69 years |
| 01/13/25 3:40 PM EST | Stingy Investing |
| "When pondering the future, I like to set my expectations by looking to the past, because it offers clues to the rewards, and risks, associated with investing in stocks." |
| More Stingy Investing: The Globe 250 for 2025 |
| The Megastars for 2025 |
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| Looking back from 2035 |
| 01/05/25 1:49 PM EST | Fun |
| "Well, sitting here in the year 2035 and looking back at our endowment's returns for the last decade is not a pleasant task. World markets have been subpar and our performance relative to world markets has been simply terrible. Hard times are never pleasant." |
| More Fun: Worth repeating |
| Pauper's grave retirement plan |
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| Simple formulaic investing |
| 01/05/25 1:47 PM EST | Value Investing |
| "Schwartz and Hanauer demonstrated that simple, easy-to-implement, systematic formula-based investing can still generate market outperformance, providing investors with efficient exposure to well-documented factor premiums." |
| More Value Investing: Bargain, value trap or something in between |
| Growth is from Mars, value is from Venus |
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| Why we struggle |
| 01/05/25 1:45 PM EST | Behaviour |
| "Why do some financial situations scare us, while others leave us unperturbed? Why do we spend time and money in ways we later regret? Why do we find our bad habits so difficult to change? Why do we admire some folks, while being jealous of others?" |
| More Behaviour: Self defense |
| Ignorance of the crowd |
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| Self defense |
| 01/05/25 1:44 PM EST | Behaviour |
| "Using the 4% rule as a benchmark for a reasonable portfolio spending rate, Blanchett found that retirees spend, on average, just 2.1%. The upshot: They could afford to double their spending without materially jeopardizing their plans." |
| More Behaviour: Ignorance of the crowd |
| Do As I Say, Not As I Did |
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| Worth repeating |
| 12/29/24 1:33 PM EST | Fun |
| "In the financial world, some topics are serious, others not so much. Since it's the holiday season, it seems appropriate to look back at some of the past year's lighter moments" |
| More Fun: Pauper's grave retirement plan |
| 5 small joys you can cut out of your life |
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| Four questions |
| 12/28/24 3:33 PM EST | Health |
| "Where's my head at? Here are four questions I've been asking myself - questions, I suspect, that might also be interesting to those who aren't facing a terminal diagnosis." |
| More Health: Partisanship predicts passing |
| Hot and heavy |
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| Bargain, value trap or something in between |
| 12/28/24 3:29 PM EST | Value Investing |
| "U.S. large value equities are very attractive today - in fact, they have almost never been cheaper relative to the overall market. Their poor trailing returns have primarily been driven by falling relative valuations, not by deterioration in their underlying businesses." [pdf] |
| More Value Investing: Growth is from Mars, value is from Venus |
| Speed skates |
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| Ignorance of the crowd |
| 12/28/24 3:27 PM EST | Behaviour |
| "But, there have also been moments where the crowd failed me. And every time this happened, the reason was the same - the crowd did not have sufficient expertise. They simply didn't know enough about the topic at hand." |
| More Behaviour: Do As I Say, Not As I Did |
| A few questions |
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| The Globe 250 for 2025 |
| 12/28/24 12:04 PM EST | Stingy Investing |
| "The market is full of presents for investors and we're pleased to highlight the best it has to offer with our Megastar ranking of the largest 250 stocks in Canada. We provide a bounty of data on each stock along with two star ratings that sum up their merit as value and momentum investments. Our team of Megastars combines the best of both worlds and builds on the achievements of last year's team, which soared 51.1 per cent." |
| More Stingy Investing: The Megastars for 2025 |
| Fairfax Week 2024 |
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| The Megastars for 2025 |
| 12/28/24 12:03 PM EST | Stingy Investing |
| "Our new Megastar ranking of Canada's largest publicly traded companies evaluates each major stock on the TSX and awards two star ratings " one for the stock's appeal to value investors and the other for its allure to momentum investors. We then focused on the 20 stocks with the best blend of value and momentum characteristics, which form our Megastar team." |
| More Stingy Investing: Fairfax Week 2024 |
| Graphing Dividends 2024 |
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| How big is the equity risk premium? |
| 12/22/24 7:56 PM EST | Markets |
| "Unlike retail investors, institutional investors do not simply extrapolate past returns into the future. They are quite rational and sensible. When equity markets decline, they increase their risk premium and thus their expected returns. When equity markets rally, they reduce their risk premium and thus their expected future returns." |
| More Markets: Chasing past performance |
| Don't expect a repeat |
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| Chasing past performance |
| 12/22/24 4:27 PM EST | Markets |
| "The only thing I know for sure is I've never seen sentiment so dour on corporations outside of large cap U.S. stocks." |
| More Markets: Don't expect a repeat |
| Long-term expected returns |
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