EBI Tweets

March, 2019

Monday 18th - 13:51

We know stock picking fails to work consistently, but the situation is even worse once one adjusts for the volatility inherent in individual stocks; the hurdle is much higher than the raw numbers might imply. https://goo.gl/FVagA2

Monday 18th - 11:52

This week's Blog looks at an offer that looks too good to be true- because it is... https://goo.gl/GJYaQS

Sunday 17th - 12:51

A sign of the times? A Dutch Pension scheme is ditching Hedge funds due to concerns over Sustainability NOT fees etc. Of course, had they cited that factor, they would then have to explain why they bought them in the first place... https://goo.gl/U4neVy

Sunday 17th - 10:57

Moodys brings forward the date of Active Manager's demise- they now believe that ETF/Passive markets share will exceed those of Active by 2021; this is based on a "diffusion model", which looks a lot like linear extrapolation...https://goo.gl/sJuZni https://goo.gl/zCpncz

Saturday 16th - 12:51

The extent of the symbiosis between Hargreaves Lansdown and Woodford's funds reveals how much brokers and fund managers "collaborate" in the investment process. Is this a good thing for clients? https://goo.gl/N8rF9m

Saturday 16th - 10:57

Momentum is building against Tobacco firms- as more and more investors divest, their shares. long seen as "defensive", have started to lag their respective Indices. And there may be more selling to come... https://goo.gl/8bkNpV

Friday 15th - 13:51

The enormous variation in returns to various Chinese Indices demonstrates the importance of knowing what you own- as the number of Indices expands, this will become ever more relevant. https://goo.gl/MKGQdK

Friday 15th - 11:52

Most "Value" funds use Price to Book as their metric, but it could be that Accounting Book Value is no longer a useful indicator; which might explain the poor returns to value in the last decade... https://goo.gl/iEqYwH

Thursday 14th - 13:51

Problems in Quant land as several factor strategies lag at the same time- cue the withdrawals and the (futile) search for a "new" investment factor that does well at ALL times... https://goo.gl/jjXTfV

Thursday 14th - 11:52

The perils of ESG/SRI Investing. A Vanguard investor "felt duped" when she (finally) read the fund prospectus and discovered what it was investing in. There is no accepted (or truly acceptable) definition of Ethical- there will always be issues for some. https://goo.gl/GAZXeq

Wednesday 13th - 13:51

SL's GARS fund is bleeding cash, with AUM now nearly 60% lower since the start of 2018; but other Absolute Return funds are also suffering. How long before they are put out of our misery? https://goo.gl/xNvtXQ, https://goo.gl/Egt9BP

Wednesday 13th - 11:52

The 10-year anniversary of the Bull market has arrived and there have been stellar returns from some shares- but would you REALLY have been able to deal with the falls they experienced on the way? Active Managers consistently demonstrate that they can't... https://goo.gl/TjNrJZ

Tuesday 12th - 13:51

More data on fund manager performance persistence (or more accurately, the lack of it)... https://goo.gl/7FVFRU

Tuesday 12th - 11:52

The average age of a US-listed company has been rising steadily for the last 40 years, due to fewer IPOs, more firms staying private and mergers etc. As those left are larger (and thus more able to deal with idiosyncratic shocks), market volatility wanes. https://goo.gl/nbH4KD

Monday 11th - 13:51

Data mining at its best- whether Gold beats stocks (or vice versa) depends crucially on the START DATE- be wary if someone uses a date which marks a low point (for one or the other). https://goo.gl/7fPGo3

Monday 11th - 11:52

This week's Blog looks at Share re-purchases; what difference do they really make? https://goo.gl/XfLfzL

Sunday 10th - 12:51

Its been a great start to the year, but don't rely on it continuing forever... https://goo.gl/qC3NuJ

Sunday 10th - 10:57

Factors (and investment styles) go in and out of fashion constantly, so they will inevitably underperform from time to time. Patience is indeed a virtue... https://goo.gl/xbYp9z

Saturday 9th - 12:51

"It is not enough to simply buy and hold with hopes of generating a positive return over the long term". Well, actually it is- IF you buy correctly, the long term will look after itself. Why not just hold- advocating buy/sell is a recipe for trouble. https://goo.gl/6ADfMJ

Saturday 9th - 10:57

Try Active investing because you are bored with Buy and Hold??? Is this what passes for "journalism" these days? https://goo.gl/VVjcbv

Friday 8th - 13:51

The full details of the inclusion process for Chinese shares into MSIC Indices and the possible effects for Long Term investors. https://goo.gl/vxWZpb https://goo.gl/VJtQWP

Friday 8th - 11:52

So, Active managers do better in volatile periods do they? According to this data, this is not true. Of course, if you are willing to wait for 15 years+, you MIGHT get lucky... https://goo.gl/5MG1Fq

Thursday 7th - 13:51

Horses for courses: this article tackles the vexing question of HOW MANY funds/ETFs etc. one should own. As long as one is as fully diversified as is practical, there is no right (or wrong) answer... https://goo.gl/iNoAyV

Thursday 7th - 11:52

"Passive investors cannot escape the full impact of a market downturn". Sadly for clients of Active Managers, the same applies to them. They have zero track record of finding "value" or timing the market. But managers have expensive lifestyles to maintain. https://goo.gl/XSdhyd

Wednesday 6th - 13:51

"There is no doubt more companies are going to (go) private. More and more of the top talent is very concerned about what a big corporate listed job means for them personally". Is this the REAL explanation for de-listing of firms? https://goo.gl/gBNFfX

Wednesday 6th - 11:52

An article suggesting that overallocation to equities is the biggest cause of investor "stress", which results in investing errors (selling at the lows etc.). Aim to minimise volatility (risk). If one wants bigger returns, the solution is to save more... https://goo.gl/k4JKqR

Tuesday 5th - 13:51

The role of "Outcome Bias" and luck in investing. If one sticks to the correct process, outcomes look after themselves more often than not; but randomness sometimes intrudes in even the best-laid plans... https://goo.gl/r8GeUz

Tuesday 5th - 11:52

One of the bigger losers from the MSCI China re-weighting will be India, though Korea and Taiwan will also see a reduction in their weights. Argentina and Saudi Araba are beneficiaries too. https://goo.gl/CfQm7Q

Monday 4th - 13:51

Long term data shows that market returns typically come in short (and unpredictable) bursts. So discipline and patience are the key virtues to have to cope with this phenomenon; don't try to anticipate markets.... https://goo.gl/19ZSuw

Monday 4th - 11:52

This week's Blog looks at the effect of currency fluctuations on the performance of UK equity markets. https://goo.gl/oa9g6e

Sunday 3rd - 12:51

Credit Suisse looks at 118 years of European asset returns- Scandinavia features prominently amongst the equity winners. https://goo.gl/Kc18tE

Sunday 3rd - 10:57

"Two months into 2019, more than half of (US) mutual funds have beat benchmarks, a rate that if sustained would mark the industry’s best year in a decade". Isn't that (extremely short) period the rub though? https://goo.gl/58tQVN

Saturday 2nd - 12:51

A survey of market return forecasts from some of the largest firms suggests a huge uncertainty amongst them. US Large Caps will return (somewhere between) +7% p.a. and -4.1%, depending on whom one believes. Not particularly useful to most... https://goo.gl/or2Sdz

Saturday 2nd - 10:57

Even the very best make investing mistakes from time to time and this one is a biggie; do YOU think you can do better? All the evidence suggests otherwise... https://goo.gl/dz5142

Friday 1st - 13:51

Lindsell Train purchases a large block of Hargreaves Lansdown's shares (c.10%), a firm that just happens to be promoting its funds to HL's one million+ clients. Surely a coincidence...? https://goo.gl/DE5d55

Friday 1st - 11:52

MSCI outlines plans to raise the Chinese weighting in their Indices (EM) in 3 stages- likely leading to a surge in fund flows... https://goo.gl/Kui8rb

February, 2019

Thursday 28th - 13:51

The Pros and Cons of Dollar (or Pound) Cost Averaging... https://goo.gl/Nx4pcV

Thursday 28th - 11:52

MiFID has reduced research fees to the tune of £180 million, which tells us how much value "leaked" out of investors portfolios in previous years. Coverage and Liquidity for Small Caps have not changed much though, despite the doom-mongering... https://goo.gl/ZbRyiM

Wednesday 27th - 13:51

Vanguard responds almost immediately to the possibility of a Zero fee ETF by cutting their charges again. The battle is once again joined... https://goo.gl/3MGzyX

Wednesday 27th - 11:52

The race for the first zero-fee ETF (albeit only for the first year) has been won, not by one of the big boys, but an online personal finance firm. It remains to be seen if this is just a PR stunt, however... https://goo.gl/TVr8oh

Tuesday 26th - 13:51

A journalist "investor" (who has no track record) excoriates one who does; they fail to discern the difference between investing and trading and suggest active management will do the job for investors- how much further can journalistic standards fall?https://goo.gl/pCT5r3

Tuesday 26th - 11:52

Aberdeen IM plans to launch a "passive" Hedge Fund....what could possibly go wrong? https://goo.gl/RsRQMd

Monday 25th - 14:53

Are trading desks the next target for cost reduction (via out-sourcing) for Asset Managers, as regulatory etc. pressure mount? https://goo.gl/CyG3V1

Monday 25th - 11:52

This week's Blog looks at the epic January surge and tries to understand what prompted it. https://goo.gl/Nai8Bi

Sunday 24th - 12:51

How safe is your investing platform/investments? A good summary of all the protections and safeguards in place (which will improve further in April. https://goo.gl/sYqJTv

Sunday 24th - 10:57

Larry Swedrow discussed the performance of US Small Value shares; though they have outperformed from 1926-2018, the 15 years returns have been disappointing. The question is whether 15 years is long enough and will investors lose patience? https://goo.gl/anKBCX

Saturday 23rd - 12:51

For the twelfth year in a row, Vanguard leads the pack in fund inflows. Is it the "Amazon" of investment management houses? https://goo.gl/WymAhw

Saturday 23rd - 10:57

Ironically, the continued popularity of Hedge Funds makes their recovery less likely, as they are STILL too big to manage efficiently. Though the tide is turning (slowly), there is still no generalised rush for the exits... https://goo.gl/jwJKJ7

Friday 22nd - 13:51

Google searches for MMT reveal a big pick-up in interest in the topic. See our recent Blog for more on this issue. https://goo.gl/BhFcg1 https://goo.gl/jfx7hq

Friday 22nd - 11:52

It isn't "intelligence" (artificial or otherwise) that will "save" Active Managers; even if it works (which is a big IF), the structural problem remains -too many of them, charging too high a fee level. Fix that and you may be getting somewhere. https://goo.gl/uigssn

Thursday 21st - 13:51

A clients response to a market fall SHOULD be related to their risk capacity, not their risk willingness. Assuming the former does not change, the reaction to most market declines should be the same- do nothing... https://goo.gl/Bpbkgp

Thursday 21st - 11:52

Equity trading costs appear to be rising, but it's NOT due to rising commissions- the implication is that markets are becoming less liquid (i.e. greater "slippage"), which makes it all the more important to keep trading to a minimum... https://goo.gl/cwNuw4

Wednesday 20th - 13:51

Fund flows still overwhelmingly into Passive funds, with Blackrock and Vanguard scooping up more than half (57%) of all new flows according to Morningstar analysis. https://goo.gl/4YdTXc

Wednesday 20th - 11:52

One reason why Active managers fail to beat falling markets can be found in their structure- they choose to hold cash, so to make up for that, they own high Beta stocks, which when markets become volatile, move down faster than the Index they track... https://goo.gl/FpU5ek

Tuesday 19th - 13:51

Factors are the "hot new thing" in investment, but how many actually work? According to this Professor, nearly all don't stand up to empirical scrutiny. Just 18% of a total of 452 factors made the cut. There appears to be a long way to go on the research. https://goo.gl/HZFuZ3

Tuesday 19th - 11:52

Even some Active managers are bearish on active management it seems, as retail investors shun them, in favour of passive funds. Where will the inflows come from? Market volatility probably won't save them either... https://goo.gl/mVeyms

Monday 18th - 13:51

The "curse" of popularity- the better a stock is liked (i.e. popular), the more likely it is to disappoint, as those factors have already been discounted in the (current) price... https://goo.gl/wqJ3je

Monday 18th - 11:52

This week's Blog looks at Modern Monetary Theory (MMT); what is it and what might it do for asset prices? https://goo.gl/bnxZyi

Sunday 17th - 12:51

If this chart looks like a downtrend line reflecting the failures of active management over time, its because it is... https://goo.gl/hDNPVi

Sunday 17th - 10:57

Puff piece on an active funds' performance, summed up nicely by the quote from the manager; ‘People question active management, but so far it has worked out well for us.’ Indeed...not sure this counts as "proof" though. https://goo.gl/Anw1sh

Saturday 16th - 12:51

There are three good reasons NOT to look at your share portfolio every day (or even every month). The fourth is that the Fed won't allow them to fall for any length of time anyway. https://goo.gl/kf1EG7

Saturday 16th - 10:57

Apparently, Investors NEED Active managers to "save them from themselves"- leaving aside the extremely patronising tone, recent events suggest it is the other way round- individuals didn't panic in December 2018, FUND MANAGERS did! https://goo.gl/ZhV29Y

Friday 15th - 13:51

"While hedge funds struggled in Q4, so did passive investments". But the latter are not aiming to beat the market, unlike the former- which rather undermines the rationale of the premise on active management (again). https://goo.gl/NjZqSE

Friday 15th - 11:52

Plane leasing funds (the market's long-held "sure thing") suddenly fall to earth as Emirates Airline's order cancellation has serious implications for aircraft second-hand values. A LOT of UK pension funds will feel some severe pain... https://goo.gl/kCPPr4

Thursday 14th - 13:51

Larry Swedroe's analysis suggests Factor timing is as difficult as market timing. So don't bother- just buy diversified exposure to the chosen factors and stick with them. https://goo.gl/Ti2MCK

Thursday 14th - 11:52

How to invest successfully over time. Ignore most of what goes on in markets (and DON'T sign up for news alerts!!). https://goo.gl/DkraEE

Wednesday 13th - 13:51

A list of the "Dogs" and the "Lions" amongst UK funds; but why the focus on just 3 years? This tells us almost nothing about the true "skill" of the winners- focus on 10-year performance and the list of winners will shrink dramatically... https://goo.gl/kdVBC6

Wednesday 13th - 11:52

This article claims that there IS a price at which Long-Short hedge funds are worth buying. But as the price for investing therein will NEVER get to zero (or even close) the argument is moot. It still doesn't' address the performance issue though... https://goo.gl/Td88pv

Tuesday 12th - 13:51

"If you want to produce exceptional returns over the long term it is helpful to be a good stock picker but it is even more helpful to avoid losses in a poor market". Clearly, the contradiction inherent in this statement is lost... https://goo.gl/6SkTPs

Tuesday 12th - 11:52

UK investors are leaving (some UK) funds in droves. SL's GARS is way ahead, but 11 funds saw more than £1 billion leave. Here's the full list of the "orphans"... https://goo.gl/1Rdvbm

Monday 11th - 13:51

Fund manager profit margins are shrinking due to fee pressures and currently are at the ludicrously thin 29% level. UK Manufacturing firms' margins (who actually MAKE STUFF) are currently 15.3%- so theres plenty more fat left... https://goo.gl/WhJ4im

Monday 11th - 11:52

Even if you time market "corrections" perfectly, you still won't beat dollar cost averaging returns. Over 40-year periods, the odds favour the latter... https://goo.gl/c3Gn28

Sunday 10th - 12:51

Since its a Sunday, we have some ETF trading "commandments" https://goo.gl/8Xj2u8

Sunday 10th - 10:57

"Active management involves discretionary securities trading done in anticipation of market turns; active managers follow rules... designed to protect their investors’ capital—ideally putting them ahead of their own interest". Ideally? LOL... https://goo.gl/LdMNBD

Saturday 9th - 12:51

Bloomberg writers struggle with the fact that Index/Passive investing is low cost; Index funds have won out for that very reason. Active funds (mostly) are not. It is NOT semantics to differentiate between them. If Active is cheap enough, that's ok too. https://goo.gl/Sd2jhj

Saturday 9th - 10:57

Private Equity incumbents believe their pricing model is safe from "disruption". In other news from the past, the economy is sound, house price declines are contained and your cheque's in the post... https://goo.gl/fmcM25

Friday 8th - 13:51

Is the Investment management industry turning on itself? Talk of "peak gravy" is all well and good, but all participants seem to think others (and not them) should exit the industry.... https://goo.gl/MKYkP8

Friday 8th - 11:52

Bill Gross, a feted bond fund manager, has announced his retirement after an illustrious career. but was his success just due to taking higher risks? Maybe his luck ran out according to this article. https://goo.gl/hGXqLA

Thursday 7th - 13:51

The Chief Executive of the FCA virtue signals about diversity etc. whilst the gender pay gap in the organisation has now risen to 21.2%. Physician, heal thyself... https://goo.gl/qVJuDm

Thursday 7th - 11:52

The FCA takes a baby step towards ending fund manager "gaming" of benchmarks, but as a benchmark is not mandatory, how much will change? https://goo.gl/kwFna1

Wednesday 6th - 13:51

Long derided as "dumb money" by smug "professionals", the latter, by stampeding out in December only to panic back in, (in January), suggests that the pros could learn a thing or two. But they won't of course... https://goo.gl/VpYkfy

Wednesday 6th - 11:52

Global investors have been structurally underweight to Small Cap shares but are now looking to raise their weightings. With a possible global recession hoving into view, however, the timing may not be prescient... https://goo.gl/CNjyU9

Tuesday 5th - 13:51

The share prices of asset managers are struggling- this article suggests why- and the (long-term) outlook does not look much better either... https://goo.gl/KHKpQi

Tuesday 5th - 11:52

According to Fidelity, their US pension clients dd NOT panic out of the markets in Q4 2018. Unlike a large number of so-called "professional" investors... https://goo.gl/RjGy9P

Monday 4th - 13:51

Despite recent Index changes, some think Chinese shares are still under-represented in Global Indices, but the higher volatility resulting from the large Individual investor base makes it hard to see how this benefits Active Managers- more scope for loss. https://goo.gl/kcNYpM

Monday 4th - 11:52

Back to the past edition- US Pension funds are increasing their Active manager weightings again. Will the results be any different this time? https://goo.gl/fxkpgr

Sunday 3rd - 12:51

Differences in STRUCTURE often explain the majority of returns differentials between two funds in the same sector (in this example, small-cap funds). These differences cause exposures to differ, meaning returns will do likewise. https://goo.gl/E9B4qh

Sunday 3rd - 10:57

It's getting a bit nippy in the US... https://goo.gl/SSd5Fy, https://goo.gl/SWDAPk

Saturday 2nd - 12:51

Greece is looking to issue bonds- 5 years paper with yields of around 3.6%. Shades of Argentina's 100-year bond issue in June 2017 (which did NOT go well for investors). Will they EVER learn? https://goo.gl/ds6wtP

Saturday 2nd - 10:57

US Corporate earnings are "beating" estimates in fewer numbers... https://goo.gl/kLpLeM

Friday 1st - 13:51

The results from a Barrons "expert" round table on stock picks for 2018 show an underperformance (versus the S&P 500) of 7 percentage points. But they're back again for 2019- accountability appears woefully lacking...(because it is). https://goo.gl/XBVAyw

Friday 1st - 11:52

Hedge Funds are behaving as they did in the last financial crisis- very low equity Beta exposure and buying put options- are they fighting the last war (again)? https://goo.gl/Cqox77

January, 2019

Thursday 31st - 13:51

Why stock picking is so hard- not only has the investor to identify a good product or firm but THEN work out what everyone has missed in the current price. It is the devils' own job to do both correctly... https://goo.gl/YABAb4

Thursday 31st - 11:52

The "efficiency" of US markets makes it hard to see a role for Active managers but this article still sees scope for them anyway- they still try to insert themselves into investors minds regardless of the facts (fees, performance etc.)... https://goo.gl/ftYDK6

Wednesday 30th - 13:51

Not only is picking the lowest day of the year to invest your lump sum massively unlikely, according to this data, you're not much better off; the risk/reward ratio of doing so is thus not in your favour. So why bother trying? https://goo.gl/cAuLmE

Wednesday 30th - 11:52

Recent market events have once again demonstrated how hard it is to successfully market time. Sellers in December are now missing out on the subsequent rally AND missing out on the dividends that have come through since then. https://goo.gl/UyNXbs

Tuesday 29th - 13:51

As with ALL funds, the bigger they get, the harder it is to make decent returns in Hedge fund land. The problem (for investors) is that many of the really big HF "names" are empire builders in disguise... https://goo.gl/h5r66n

Tuesday 29th - 11:52

More doom-mongering on Index funds causing market crashes- but once again there is no explanation as to WHY Buy and Hold will suddenly morph into Buy and Sell; they haven't done it before, so why will they suddenly start to sell? https://goo.gl/xrsyGd

Monday 28th - 13:51

Waiting for equity Volatility to subside may be like waiting for Godot- in may never happen. Even if it does, what is the "All clear" signal? The charts show a series of "V" shaped market lows, with no warning of a bottom being in... https://goo.gl/aj5MT9

Monday 28th - 11:52

This week's Blog looks at the importance of investing in line with one's temperament or mindset. https://goo.gl/Lg1SzY

Sunday 27th - 12:51

The headwinds for Active Managers are rising again... https://goo.gl/p6M3s3

Sunday 27th - 10:57

The Virgin All Share Tracker fund has cut its fees !! To a bargain basement 0.6% (not). The problem is that most of those in it will still not notice that they're wildly over-paying... https://goo.gl/tg8wAm

Saturday 26th - 12:51

A Hedge Fund manager comes clean on his motivations for so doing- is it the challenge of trading against the market, the variety and the buzz? Nah, it's the fees... https://goo.gl/4AwAAu

Saturday 26th - 10:57

Are markets becoming more volatile? No; adjusted for the higher prices pertaining now, percentage price moves are actually smaller than they were 10 years ago. https://goo.gl/VeqGng

Friday 25th - 13:51

If a Fund Manager asks you to ignore benchmark-relative performance and "focus on your long term goals", run, don't walk away... https://goo.gl/jEMRRf

Friday 25th - 11:52

Quant funds and the search for alchemy... https://goo.gl/L26sGP

Thursday 24th - 13:51

Income falls for asset managers are now trickling down to the supply chain, leading to job losses in the asset custody markets too. More to come? https://goo.gl/bxrLin

Thursday 24th - 11:52

An interesting perspective- a 1% S&P 500 swing equals a $300 billion valuation change; the assets, sales value, customers and suppliers haven't changed. Ignore the noise and stay with a diversified, long term portfolio... https://goo.gl/Ri5Pqx

Wednesday 23rd - 13:51

The first part of an article on investing lessons from 2018- after a down year, we are having to re-learn many of them... https://goo.gl/ZUcGAV

Wednesday 23rd - 11:52

Moodys compares Passive funds to mobile phones and Active versions to landlines. This is deeply unfair- landlines can be useful... https://goo.gl/7kxghD

Tuesday 22nd - 13:51

UK Councils are going on a Property-buying splurge- as the High Street struggles, could this end badly? https://goo.gl/Ua5eUW

Tuesday 22nd - 11:52

A simple chart that demonstrates the benefits of re-balancing on a semi-annual basis. Using pre-defined "tolerance bands", one can do even better... https://goo.gl/W7wsNk

Monday 21st - 13:51

More evidence that one can be generous to others and still "succeed" in finance.... https://goo.gl/E6Nizd

Monday 21st - 11:52

This week's Blog asks whether we are heading for a global recession and what to do about it. https://goo.gl/qrYHQG

Sunday 20th - 12:51

Markets are becoming more and more for the rich only... https://goo.gl/Ku1Ehq

Sunday 20th - 10:57

A Russian University Professor has suggested Lego (really!) as a portfolio diversifier. Is this a fiendish Soviet plot to destabilise Western markets...? https://goo.gl/VVKEZC

Saturday 19th - 12:51

“We are not here to protect investors from losses,” Kashkari added. “This is a capitalistic economy we live in and if investors take risks, they should bear the consequences of those risks.”- except for Wall Street Banks of course... https://goo.gl/cVGi9d

Saturday 19th - 10:57

This "analyst" KNOWS there will be a crash and KNOWS that the markets will fall 50-90% and has a plan-buy Gold, which completely by coincidence is what his firm sells...hmmm. https://goo.gl/yuNSE6

Friday 18th - 13:51

An analysis of Factor Exposures in ESG funds- negative exposures to Size and Value suggest firms running into difficulties (and Smaller companies) may not have the resources available to meet the criteria for inclusion. https://goo.gl/ACCTj5

Friday 18th - 11:52

There is no evidence to support the contention that it is possible to beat the market- this complicates the Active investment industry's marketing strategy, so they resort to warm words and generalities- returns are not guaranteed, but the fees are... https://goo.gl/rxf5f4

Thursday 17th - 13:51

"Opinions is divided on the subject"- everyone else thinks one should reduce risk by diversification, but this advisor thinks you shouldn't; stock-picking may well be "enjoyable" but that doesn't mean it works... https://goo.gl/q3ML2D, https://youtu.be/9NMOllP3eN4

Thursday 17th - 11:52

R.I.P. Jack Bogle, who died last night, aged 89- a true Wall Street outsider... https://goo.gl/n4b7kE

Wednesday 16th - 13:51

Apparently, Retail Investors "panicked" during the sell-off in December- unlike "Professionals" of course, (CTA's, Hedge Funds and Institutions etc.). Wonder why Individual investors are held to a higher standard that those PAID to invest for others... https://goo.gl/vCs3yA

Wednesday 16th - 11:52

Fees DO make the difference between winning and losing, but Active funds don't seem to have worked this out yet- or they don't want you to know... https://goo.gl/rv31R8

Tuesday 15th - 13:51

Daily market moves, recency bias, and randomness- it's all there to fool us... https://goo.gl/pHoSwP

Tuesday 15th - 11:52

UK Property funds have "re-priced" their offerings causing a loss of 6% as they face increased withdrawals- shades of the chaos of 2016... https://goo.gl/1okfUe

Monday 14th - 13:51

Former Hedge Fund manager believes the bull market could last another decade; in other news, he's re-starting his old (hedge) Fund... https://goo.gl/QurFty

Monday 14th - 11:52

This Weeks' Blog looks at the effect of the Fed's policy decisions on asset Liquidity, which often has more effect than valuations in moving prices in either direction. https://goo.gl/uiNDMh

Sunday 13th - 12:51

After a poor December, the bad news for Quant funds is that FACTOR correlations are rising, even though Individual Stock correlations are not. Is this "crowding" at work? https://goo.gl/BfM9vz

Sunday 13th - 10:57

A good way to counter the "sell everything" mentality when markets get rocky... https://goo.gl/JY54TD

Saturday 12th - 12:51

The last 20 years for US stocks has not been that great, but does this tell us about the next 20? Unfortunately, it does not. https://goo.gl/Znm4eX

Saturday 12th - 10:57

In September, the FCA bring in their "Value for Money" assessments, which could see high Index Tracker charges coming down. But who DOESN'T know about this? Haven't they already switched? If not, will they bother at all? https://goo.gl/qx2wkA

Friday 11th - 13:51

If all else fails, an underperforming Fund manager can always blame other investors; never, it seems, his (or her) own decisions... https://goo.gl/hAHTDj

Friday 11th - 11:52

In aggregate, Investors saw no stock-picking benefits from last years price volatility, which is why they continue to go for Indexing... https://goo.gl/45RcUk

Thursday 10th - 13:51

This survey suggests zero-fee funds won't catch on in Europe, "because managers would still have to find some way to pay for the fee-less funds, which would still cost money to operate". So how do the US firms manage it? Is it Can't or Won't? https://goo.gl/q5M2ex

Thursday 10th - 11:52

The HL Wealth 150 list has been culled to just 61 funds, but Woodford funds and the M&G Recovery fund stay in despite very poor performance whilst Fundsmith is still not in despite good returns. Is it about HL fee income generation rather than performance? https://goo.gl/5ZWLkJ

Wednesday 9th - 13:51

Vanguard retains its status as the fastest growing Fund Manager in the world for the 7th year running, even as overall inflows fell a little- however could they have managed it? Er, its about fees... https://goo.gl/amkfbC

Wednesday 9th - 11:52

Liquidity (as measured by market depth) appears to be drying up. This magnifies price swings and reduces it still further as traders withdraw. Is that why markets are rising (and falling) so fast? https://goo.gl/AdbBTG

Tuesday 8th - 13:51

A new report attempts to quantify the costs of market timing via "timing leakage". Turns out it is c.1-2% per annum. This may be an understatement though- the more volatile the market/asset class, the bigger that leakage will be... https://goo.gl/cnPh9T

Tuesday 8th - 11:52

More warnings about the "dangers" of passive investing from an underperforming active manager... https://goo.gl/DRGtSX, https://goo.gl/p1j8U6

Monday 7th - 13:51

Market "guru?" admits he got the market rally call for December wrong, but he's still bullish; he could be right (this time), but investors may consider tossing a coin- they may reach the same conclusion... https://goo.gl/3w4cZN

Monday 7th - 11:52

This week, in our blog we look at Factor Investing and the Factors we DON'T use... https://goo.gl/F7wa4H

Sunday 6th - 12:51

Vanguard is to liquidate a c.$1 billion fund, but the rationale is rather strange- 'We are adding new products that have investment merit...and eliminating funds that lack a distinct role or strong investment case,' So this fund has no investment case? https://goo.gl/GXffRq

Sunday 6th - 10:57

Best and Worst performing funds for 2018- Precious Metals dominate the winners, whilst the US features prominently amongst the losers. It was an ugly month for most investors though. https://goo.gl/Tvt67E

Saturday 5th - 12:51

More on the "benefits" of Active Management; they can hold cash (they never do BEFORE market falls), and they can "buy low" when markets fall (they never do that either). Thus, they fail to beat the markets almost regardless... https://goo.gl/Qwn3Ts

Saturday 5th - 10:57

Why High Yield investing fails- because its return profile is too similar to that of equities; both suffer at the same time because their risks are correlated. https://goo.gl/bHZzP8

Friday 4th - 13:51

Do different generations have differing investment styles? Not sure one can benefit from generalising about specifics... https://goo.gl/iyRpQH

Friday 4th - 11:52

(For about the 5th consecutive year) Active funds predict that they will outperform Passives in 2019- in other news, the world is flat... https://goo.gl/5JcuaS

Thursday 3rd - 13:51

A prominent Hedge Fund manager has lost 9% in December (and 34% in one year)- another HF with no hedge... https://goo.gl/iKYRLz

Thursday 3rd - 11:52

Are electronic trading programmes the cause of the declines of late? Maybe, but nobody seemed to care much when they were buying "indiscriminately". Strange that... https://goo.gl/3pbMvE

Wednesday 2nd - 13:51

Is there a connection between an asset's popularity and its' long-term returns? Yes, but the relationship is negative, NOT positive as if everyone has already bought it, to whom do you sell? https://goo.gl/iAhEjS

Wednesday 2nd - 11:52

The Year ahead from an Astrological perspective... https://goo.gl/9vNbFk

Tuesday 1st - 13:51

Tuesday 1st - 11:52

When markets fall, there is a clamour to get into cash as each decline looks like the end of the world. But it rarely is and the "safety" of cash often turns out to be a (costly) illusion. https://goo.gl/h317fC