How asset class returns move in cycles with periods of above-average returns followed by periods of lower returns. How has the rise of passive indexing led to higher stock valuations, and what does that mean for markets? Show Notes The Equity Risk Premium: Nine Myths (JPM Series) by Rob Arnott—Research Affiliates The Greatest Scourge in Factorland: Revaluation Alpha = Fake Alpha (JPM Series) by Rob Arnott—Research Affiliates PASSIVE INVESTING AND THE RISE OF MEGA-FIRMS by Hao … [Read more...]
385 Plus: May 2022 Investment Conditions and Who Is Selling?
In Plus episode 385, we look at current investment conditions and why now is not the time to panic. We consider how the 2022 market decline differs from the bear market in 2020. We also consider who are the buyers and sellers when equity markets swing violently from day to day. … [Read more...]
365: Why Some Asset Bubbles Don’t Burst
What conditions need to be in place for an asset bubble to continue and how that applies to stocks, cryptocurrency, and houses. Topics covered include: How to determine if there is an asset bubbleWhat are microbubbles and anti-bubblesHow the cannabis stock bubble burstWhat is required to sustain an asset bubbleHow the current runup in home prices differs from the housing bubble in the mid-2000sWhat structural changes have led to the high valuations for U.S. stocksWhat is the Great … [Read more...]
298: The Stock Market Is Not the Economy
How the stock market differs from and can perform differently than the economy while remaining highly dependent on the economy for its success. Topics covered include: Why the stock markets in countries with lower economic growth performed better than the stock markets in countries with higher economic growth.How the top 5 stocks in the S&P 500 Index have the largest weighting in 30 years and what will it takes for these stocks to outperform the market.What are the largest … [Read more...]
219: The Incredible Shrinking Stock Market
How fewer publicly traded companies, fewer stock shares outstanding, and more intangible assets have led to higher earnings growth for U.S. listed companies and ultimately stronger stock market performance. In this episode you’ll learn: Why the number of publicly listed companies, particularly small companies, is shrinking. What is the impact in the increase in intangible assets held by businesses. What is the impact of share buybacks by global companies. How employer … [Read more...]
70 Plus: Stock Market Sell Offs and Market History
This week's Money For the Rest of Us Plus episode reviews the week's 5% plus stock market sell-off and what current market conditions and market history suggest are possible outcomes in the coming months. I also discuss how I benchmark portfolio. The episode length is 17 minutes. … [Read more...]
