As indexing grows, active stock pickers are underperforming the market by increasingly large margins, even as their skill improves. In this episode, we explore why this is happening and consider whether active managers can outperform again. Finally, we explain how to position your portfolio using index funds and ETFs without overweighting the S&P 500 Index. Topics covered include: Show Notes Episode slides Sharpening the Arithmetic of Active Management by Lasse Heje … [Read more...]
441 Plus: Fixed Rate Debt, Japan and Yield Curve Control, Activist Short Sellers, Treasuries and Taxes
In Plus episode 441, we consider the economic impact of private-sector fixed-rate debt versus variable-rate debt. We discuss the Bank of Japan's apparent abandoning of yield curve control. When Treasury bondholders have to pay capital gains tax. Finally, we analyze activist short sellers. Become a Member If you would like to listen to this episode of Money For the Rest of Us Plus, you can do so by becoming a Money For the Rest of Us Plus member. Learn More About Membership Options » … [Read more...]
MNY105 Plus: Expected Stock Returns and Activist Investing
This week on Money For the Rest of Us Plus we review McKinsey Global Institute's recent report on expected stock market returns and compare it to the return assumptions on the Hub. We also look at how successful activist investors have been in their quest to boost returns by initiating changes in strategy and management in their target companies. Finally, I answer some follow up questions on implementing model portfolios. The episode length is 18 minutes. … [Read more...]
