The low-yield environment manufactured by central banks has encouraged and precipitated yield-seeking speculation. Investors and speculators alike have taken up a near-religious conviction in the demi-god status of central bankers. Will these central bankers continue to enjoy their god like status indefinitely or will they disappoint their followers?
In this article, I provide evidence that GDP growth rates do not correlated well with investment returns while refuting the claim of a prominent investment manager from India that GDP growth rates are somehow directly linked with investment returns.
Do Investors Intelligence bulls and bear readings have predictive ability? In this post, I discuss a model for analyzing II readings and their role as a sentiment analysis tool.
My telephonic interview with Cris Sheridan of Financial Sense where we discuss my article on U.S. Corporate Profit Margins and why are they likely to revert to their long-term mean.
High quality stocks, defined as companies with high returns on capital, good quality of earnings, and low leverage, has substantial superior investment return predictability. Quality firms as selected by our strategy generate substantially superior returns even though they are significantly larger than the average company in terms of market capitalization. Further, investment returns of high quality stocks are higher than the benchmark even though risk as measured by standard deviations as well maximum drawdowns is lower than the market.