Weekly Research Briefing:
Tug of WarFebruary 19, 2019
With the S&P 500 now trading at 16 times its 2019 consensus earnings estimate in a declining earnings environment, it is now time for the fundamental valuation anchor to begin to resist the very strong pull of a technical bounce since Christmas.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 >
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.
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.
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 >