Most Recent Stingy News
|
|
| Do it your way |
| 10/07/24 2:24 PM EST | Behaviour |
| "It's possible to be humble and learn from other people while also recognizing that the best strategy for you is the one closest aligned with your unique personality and skills." |
| More Behaviour: Never quite enough |
| Are we now too impatient to be intelligent? |
|
| Underwater overseas |
| 10/06/24 9:12 PM EST | World |
| "But in the data we have, there's a clear pattern of U.S. and international stocks taking turns as the better performer. On a chart, their relative results look a bit like a sine wave, oscillating back and forth. International stocks saw periods of outperformance in the mid-1970s, the mid-80s and the mid-90s." |
| More World: The great rotation 2 |
| Solar's extraordinary growth |
|
| Bad news for the homebuyers |
| 10/06/24 8:48 PM EST | Real Estate |
| "Imagine laying out the following scenario a few years ago: Inflation will hit its highest level in four decades. That will force the Fed to raise rates from 0% to 5%+ in a hurry. Inflation will eventually fall back to target but a recession isn't the reason why. By the time the Fed is ready to start cutting rates the stock market will be back to all-time highs. Gold too. And housing prices." |
| More Real Estate: The bull case for housing |
| Why Haven't Home Prices Dropped? |
|
| Bonds back in play |
| 10/06/24 8:31 PM EST | Bonds |
| "We found that after periods of declining stock-bond correlations, a 60/40 portfolio tends to outperform an all-equity portfolio on both an absolute and risk-adjusted basis. The strength of the 60/40 portfolio in these periods lies in its ability to reduce equity volatility and benefit from bond price appreciation during equity downturns." |
| More Bonds: Upside down |
| The calm before the storm |
|
| The great pumpkin |
| 09/28/24 8:03 PM EST | Markets |
| "While valuations support our view that stocks are in another bubble, rarely is today's market labeled as one. This is the case even as equity valuations are near or above past bubble peaks. Given the associated career risk and fear of being labeled an extremist, few professional investors are willing to even say the word. As Linus puts it, 'There are three things I've learned never to discuss with people: religion, politics, and the Great Pumpkin.' While avoiding talking about an asset bubble may make it easier to participate, it doesn't reduce the risk of its presence." |
| More Markets: Are demographics destiny? |
| Forecasting volatility and correlations |
|
| Spending rules |
| 09/28/24 8:01 PM EST | Thrift |
| "I fall back on seven rules that - I hope - will make my spending less impulsive and more thoughtful." |
| More Thrift: Lifestyle creep is mostly a myth |
| Debt narrows what you can endure |
|
| The great rotation 2 |
| 09/28/24 7:59 PM EST | World |
| "When the United States last exceeded 60% of global market capitalization in the 1960s, the US economy accounted for 40% of global GDP. Today, the US is similarly overrepresented in global market capitalization, but it only accounts for 26% of global GDP." |
| More World: Solar's extraordinary growth |
| Japan's stealth profit boom |
|
| Solar's extraordinary growth |
| 09/23/24 8:16 PM EST | World |
| "Combined solar-plus-storage energy projects are already cheaper than new fossil fuel power plants in many parts of the world, and costs are poised to fall further." |
| More World: Japan's stealth profit boom |
| Rule, Britannia |
|
| Cliff Asness and three quant crises |
| 09/21/24 5:42 PM EST | Asness |
| "I don't think I was wrong from that period for our form of value, but the old saw in this industry is 'early is the same thing as wrong.'" |
| More Asness: The less-efficient market hypothesis |
| The president's trophy curse |
|
| Are demographics destiny? |
| 09/21/24 4:29 PM EST | Markets |
| "After controlling for working-age population, basically every country besides Italy has had remarkably similar changes in their overall GDP. This isn’t GDP per capita because it doesn't use total population, but working-age population. In other words, GDP per worker has grown roughly the same across these developed economies. " |
| More Markets: Forecasting volatility and correlations |
| The Great Rotation |
|
| Upside down |
| 09/21/24 3:57 PM EST | Bonds |
| "Well, look at that! As the Fed cut the short-term policy rate, yields in the portion of the yield that matter more rose." |
| More Bonds: The calm before the storm |
| Comfort has a cost |
|
| Never quite enough |
| 09/21/24 3:56 PM EST | Behaviour |
| "This striving is truly never ending. Like everybody else, I'm running on the hedonic treadmill, figuring happiness is just one accomplishment away, only to discover I never quite reach the finish line." |
| More Behaviour: Are we now too impatient to be intelligent? |
| A cautionary tale of forecasting |
|
| Forecasting volatility and correlations |
| 09/21/24 3:55 PM EST | Markets |
| "Although returns appear to follow a random walk, we see that this simple model actually does an okay job of predicting volatility and a good job at predicting some of the correlations." |
| More Markets: The Great Rotation |
| Diversifying equity portfolios |
|
| Jonathan Clements' financial plan |
| 09/15/24 3:16 PM EST | Retirement |
| "Personal finance master Jonathan Clements is turning his recent terminal cancer diagnosis into an important teaching opportunity on money and life." [video] |
| More Retirement: Laying down a floor |
| A guide to semi-retirement |
|
| The Great Rotation |
| 09/15/24 3:02 PM EST | Markets |
| "investors may be well served by balanced allocations that are based on net income generation, with around 55% weight in the US and 45% internationally." |
| More Markets: Diversifying equity portfolios |
| Cumulative vs. cyclical knowledge |
|
| Paid to not understand it |
| 09/15/24 2:09 PM EST | Crime |
| "I used to wonder why these platforms care so little. Don't they want a better user experience? Don't they want people not to get scammed? Don't they care about their platform's reputation? Then it finally clicked. They don't care because caring won't generate profits right now." |
| More Crime: Avoiding bad guys |
| Financial cancellation |
|
| Laying down a floor |
| 09/15/24 2:06 PM EST | Retirement |
| "What if we could create an inflation-indexed guaranteed pension from half of our savings - one that wouldn't involve any annual investment expenses, aside from paying taxes on the amount we take out every year?" |
| More Retirement: A guide to semi-retirement |
| Turning on a dime |
|
| Diversifying equity portfolios |
| 09/15/24 2:04 PM EST | Markets |
| "International equities clearly provide the most diversification benefits of any of the major style exposures. US small caps are next. US large-cap growth, large-cap value, and mid cap provide the least diversification." |
| More Markets: Cumulative vs. cyclical knowledge |
| Michael Mauboussin on concentration |
|
| The less-efficient market hypothesis |
| 09/08/24 9:07 PM EST | Asness |
| "I argue that over the past 30+ years markets have become less informationally efficient in the relative pricing of common stocks, particularly over medium horizons. I offer three hypotheses for why this has occurred, arguing that technologies such as social media are likely the biggest culprit. Looking ahead, investors willing to take the other side of these inefficiencies should rationally be rewarded with higher expected returns, but also greater risks." |
| More Asness: The president's trophy curse |
| Cliff Asness interview |
|
| Cumulative vs. cyclical knowledge |
| 09/01/24 2:05 PM EST | Markets |
| "Reading old finance articles makes you feel like the ancient past was no different than today - the opposite feeling you get reading old medical commentary." |
| More Markets: Michael Mauboussin on concentration |
| Overvalued or new paradigm |
|
| Pizza Pizza |
| 09/01/24 1:42 PM EST | Value Investing |
| "While we appreciate the desire to reduce exposure to overvalued large cap stocks, we do not believe blindly rotating into less liquid, and often financially constrained, small cap stocks is the answer. In fact, with valuations still expensive, debt maturities approaching, and buyback bids disappearing, we believe investors currently piling into small cap stocks will ultimately be disappointed." |
| More Value Investing: The superior returns of cyclical stocks |
| Mean reversion, or extreme aversion? |
|
