Posts filed under “Index/ETFs”
Rob Arnott turned the world of passive index investing upside down. Best known for creating “smart beta,” Arnott creates models weighted b y four factors: Sales, profits, book value and dividends. Market cap is not relevant to him.
This is the second episode in our new series “Masters in Business” that I’ve created with Bloomberg Radio and Bloomberg View. Our goal is to turn the usual Wall Street interview show upside down by ignoring short-term market concerns and focusing instead on how some of the modern masters in business and finance developed their personal philosophies and strategies.
You can listen to “Masters in Business” on Bloomberg AM on weekends and nationally on Sirius XM channel 119. Listen to last week’s interview with Jeff Gundlach on SoundCloud, and check back next week for a chat with Arthur Levitt.
You should listen to this despite that terrible picture . . .
Source: Bespoke Investment Group How expensive are stocks? Its a question that seems to beget many different answers. Too often, the response reflects the responder’s investment posture. If they are long equities, they typically respond by saying “Not very.” If they are short, or in cash or in other risk assets, the answer is…Read More
The Dow Jones’s 22,000 Point Mistake Bryan Taylor, Ph.D., Chief Economist, Global Financial Data One of the long-term components of the Dow Jones Industrial Average has been IBM. The company was originally added to the Dow Jones Industrials on March 26, 1932 in a reshuffle involving eight stocks including Coca-Cola, Nash Motors (later American Motors)…Read More
Twice a year, S&P releases a “SPIVA Scorecard” – a report comparing the performance of Active Managers versus three passive indices. The S&P 500 large caps, S&P MidCap 400, and S&P SmallCap 600 are pitted against the median returns of active managers. In the most recent report, the trailing 12 months returns for these indices…Read More
I did a long interview with Forbes, we discuss some investing themes and ideas: “Here’s the thing I think most people have a hard time understanding and putting into context. To say stocks are cheap or expensive today is to simultaneously discuss two different things. The first is future earnings power. So the real question…Read More
Want to know what has been in the Dow Jones Industrials over the past century and change? Click thru for an interactive chart that shows the full history of the Grandpappy all of indexes. 128 years of the Dow — what’s in and what’s out click for interactive chart Source: CNNMoney Hat tip Tal Yellin
click for interactive version Source: WSJ Nice graphic and article explaining how only 5 stocks (of 30) in the Dow are the prime drivers of the rally, responsible for one third of the gains. Before you go Oooh, consider the simple math of this. If every stock contributed equally to the Dow’s rise,…Read More