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This is a variation of the Dogs of the Dow Strategy and apparently was developed by Meb Faber. Instead of looking only at dividends, the investor looks at dividends and net stock buy backs. Faber’s data say that the strategy has a better return than the Dogs strategy and also has less risk. Faber also […]
The cyclically-adjusted price-earnings ratio (CAPE), also known as the Shiller P-E ratio, attempts to smooth market valuations by using the 10-year P-E ratio instead of only current earnings. The problem for many investors is that the CAPE ratio has said U.S. stocks are highly overvalued for some time. Investors following CAPE missed a lot of […]
Few people outside the investment world have heard of Renaissance Technologies. Even fewer have heard of its premier fund, Medallion. This article provides some details, based on dozens of interviews. The firm is drawing increasing interest because money earned from it helped the Trump campaign and a number of political organizations. For outsiders, the mystery […]
What are the traits of a successful investor. I’ve tried to make clear in Retirement Watch that in all your financial decisions you need a process. People make mistakes when they don’t have a process. They use rules of thumb, short cuts, intuition, or whatever bit of information they recently encountered. This article explains from […]
The Blackstone strategist generally is bullish about the economy and U.S. stocks. In his latest monthly essay, it makes several arguments in favor of his bullish thesis. But he also writes about what worries him and what events could make his outlook wrong. My principal worry is earnings disappointment. According to Bianco Research, revenues in […]
A simple investment strategy that works well over the long term is to buy the five stocks listed in the Dow Jones Industrial Average with the highest dividend yields. Readjust the portfolio annually to hold the newest highest-yielders. The strategy doesn’t work well every year, but it’s doing very well in 2016. To be sure, […]
For most people, there are two types of investing: fundamental and technical. There are subsets within the two categories, but those are the two main categories. This article is an entertaining review of the development of the two categories and argues that they have become like religions with different hard-core followers. It argues for following […]
The Harvard Endowment has had troubles for a while now. After a long period of success, especially in the 1990s, students and alumni began to regularly complain that the staff of the endowment should be paid dramatically less. That’s led to a lot of turnover and changing strategies at the endowment. The endowment’s also had […]
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