Weekly Research Briefing: Ready for Lift Off?April 22, 2019
Lots of talk about the 2019 melt-up last week. Fingers pointed at the very accommodating Federal Reserve, rebound in 2019 U.S. economic data, bottoming in China, and risk-off positioning of investors. With the market near its highs and S&P 500 trading at 16 times next years earnings estimate of $180, I wouldn’t be the first to say that investors are scared right now.READ NOW >
Tapping Investor Behavior to Source Alpha
Behavioral biases influence even the most expert investors, and often create a predictable pattern of how future company expectations could evolve.
Defining Alpha...It's Skill Not Excess Return
Alpha may be a common investment term, but it remains commonly misunderstood. Market observers often define alpha simply as a fund’s outperformance relative to a benchmark. This misconception is not only incorrect, but ignores what alpha truly identifies: manager skill.
The New Core Allocation:
With equity valuations at elevated levels, subdued economic growth due to changing demographics and stubbornly low productivity gains, as well as a bleak outlook for fixed income, advisors are challenged to rethink foundational portfolio elements of investor portfolios—which means seeking out strategies that bolster the core going forward.READ NOW >
Wall Street Mood MonitorTMFourth Quarter 2018
We gauge Wall Street sentiment by comparing the cumulative upward and downward revisions sell-side analysts make to their corporate earnings estimates. By that measure, the mood has become decidedly sour. While analysts’ outlook has turned sour though, the earnings environment remains positive.READ NOW >