While it may not always work out so well for investors, according to this academic study, “evidence suggests that market overvaluation may generate social value by increasing innovative output and encouraging firms to engage in ‘moon shots.’” Read Now
The fact that the leading stocks going into a bear market are rarely the leading stocks coming out of it can create significant opportunity, writes Richard Bernstein Advisors in this monthly Insight column. Using historical data, it highlights the industry sectors that today “seem better suited to the evolving global economy.” Read Now
Wharton professor Urban Jermann, based on his recent research, describes for Knowledge at Wharton what he considers a more complete methodology for valuing gold. Read Now
Research from Wharton marketing professor Raghuram Iyengar, as described in this Knowledge at Wharton article, examines the good and the bad in what have become ubiquitous customer loyalty programs. Read Now
Rayliant Global Advisors’ founder Jason Hsu explains in this blog post why he’s less than optimistic about U.S. politicians’ and central bankers’ abilities to navigate the rocky economic climate ahead: “We are quick to criticize others’ regulatory and fiscal missteps, but it would be foolish to imagine the U.S. Federal Reserve and our other institutions are not similarly capable of self-harm – out of ignorance, hubris or politics. I hazard to guess the worst is not yet over in the United States.” Read Now
Niels Jensen of the U.K.’s Absolute Return Partners examines in this investor letter whether gold offers viable portfolio protection against out-of-control inflation: “The short answer is yes, but probably for a different reason than you may think.” Read Now
John Neff of Akre Capital in this commentary describes the importance for investors to keep their wits about them when “business fundamentals and share prices diverge” – as he argues is the case today for portfolio holdings such as CarMax and KKR. Read Now
Harding Loevner in this research report – subtitled “Capitalizing on the Electrification of Landscaping – details their assessment of prospective winners and losers in the global market for outdoor power equipment. Read Now
Causeway Capital portfolio managers make the case in this commentary why they “have used share price weakness to add incrementally to banks and industrials positions as the valuations (in all but ultra-draconian scenarios) are astonishingly low.” Read Now
After highlighting up front “that this memo has nothing to do with assessing the markets’ likely direction from here,” Oaktree Capital’s Howard Marks explains what he’s learned over time about market cycles, why they exist, and why they inevitably recur. Read Now
Making a distinction between run-of-the-mill growth stocks and what he considers “growth traps” – growth stocks that disappoint relative to forecasts – GMO Co-Head of Asset Allocation Ben Inker explains why he expects growth traps “to remain more painful than normal for some time to come.” Read Now
Horizon Kinetics in this investor letter dissects a recent announcement from long-time portfolio holding Texas Pacific Land that it has formed a strategic alliance with two cryptocurrency mining companies. Read Now
Pershing Square Capital’s Bill Ackman delivered this presentation in April to the New York Federal Reserve, arguing for more aggressive action against inflation than he thought at the time was being contemplated. Read Now
Harding Loevner portfolio manager Wenting Shen recounts in this essay the trials and tribulations she encountered on a recent work trip to China. Read Now