Recently Curated Economic & Market Articles

Current Chart of Interest

November 14, 2017

The chart of the week is from Factor Investor and depicts the rolling performance of U.S. vs. foreign equity markets.

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Goldman Sachs Warns on Stock and Bond Valuations

November 29, 2017

Bloomberg has a report on Goldman Sachs’ recent warning that stocks and bonds have collectively reached an average valuation that is the highest since 1900. Goldman is forecasting lower returns for both equities and bonds due to central banks shifting away from their accommodating posture and a potential rise in

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Yale’s CIO is Troubled by Low Volatility

November 29, 2017

Bloomberg summarizes an interview with David Swenson, CIO of the Yale endowment, regarding his concern with the persistence of low-volatility and the near-term prospects for lower market returns. Swenson is “warning university officials to expect returns, as little as 5% annually, which would be down from previous assumptions of

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Investors Finding Little Value in Value Stocks

November 28, 2017

The Wall Street Journal has an article on the current struggles of value investors and whether the recent stretch of poor relative performance portends a reversal. The article offers two interesting reasons for the recent out-performance of growth-oriented stocks: (1) technology is entering a new era, and (2) bond yields have

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Hedge Funds Continue to Deal with Issues

November 28, 2017

Bloomberg has a report on the annual EY (formerly Ernst & Young) hedge fund survey, which reveals some broad industry trends. Per the report, only “one in ten investors, overseeing $1.6 trillion, plan to increase hedge fund allocations in the next year.” In addition, “a quarter of hedge funds surveyed had either cut their management fees

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Passive Investing is Dangerous?

November 14, 2017

Nobel Prize-winning economist Robert Shiller was interviewed by CNBC and provided some very interesting comments about passive, index investing. During the interview, Shiller highlighted the “free-riding” problem associated with passive investing, where investors rely on the philosophy of the market is “all-knowing.” Shiller is not the first

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