Is the Environment for Active Management Improving?
We are asked this question on a regular basis, but believe it is fundamentally the wrong question for investors to ask if they are seeking to outperform the market over the long term.
February 2018
Is the Recent Concentration of US Equity Performance in a Small Number of Stocks a Cause for Concern?
Not in our opinion. Recent market leadership by the so-called FAAMG stocks is not extraordinary relative to history, and their valuations and fundamentals, combined with this year’s relatively healthy market breadth, mean that they don’t necessarily present an outsized threat at this time.
August 2017
Will the Nascent Shift in Equity Market Leadership from US to Non-US Equities Persist?
Prospects for a continued turn in the cycle look promising. US outperformance relative to other developed markets peaked in November 2016, as the chart below shows, raising the prospect that the cycle has indeed turned. US equity leadership has faded as valuations have moved into very overvalued territory, while other markets are fairly valued and […]
July 2017
Should Investors Buy Downside Protection to Hedge Against an Equity Market Drop?
We don’t think so. Investors with diversified portfolios already have some cushion if equities sell off given holdings like fixed income, hedge funds, and other diversifying assets. Further, trying to time the market by buying derivatives or substantially reducing equity exposure is rife with behavioral risks that could see investors ceasing to purchase protection just […]
April 2017