This gem comes from Seth Klarman the head of Baupost Group and should be blasted out to all investors: “When securities prices are high, as they are today, the perception of risk is muted, but the risks to investors are quite elevated.” I tweet this out last night from @tmcgeeney: This is how individual investors view
I don’t know. And if anyone tells you otherwise walk away – immediately. As I have said ad nauseum, you can’t predict the end of bull or bear markets based on valuations. An example: The CAPE Ratio stayed above the current CAPE ratio levels from February 1997 through April 2002. Valuations are not “market timing”
Through July 2017, exchange-traded funds (ETFs) took in a record $391 billion – surpassing 2016’s record inflow of $390 billion. According to Bank of America, 37% of the S&P 500 stocks are now managed passively. Vanguard, which introduced the world’s first passive index fund for individuals in 1976, has $4.7 trillion in assets (around $3
Possibly. Just ask Japan. And blame the Stock Vigilantes. For your Saturday reading pleasure (or if you want to fall asleep tonight). Here is Janet Yellen’s speech, A Challenging Decade and a Question for the Future, which is available here. In her speech she stated that the US economy had made “great strides.” However, policymakers
John Taylor is one of the final two candidates in the running for the Federal Reserve chairmanship after Janet Yellen was removed from consideration. He recently outlined his position on the topic of Fed Funds rates: “One clear lesson from this historical experience is that the Fed should normalize policy and get back to the