Mean Reversion + Valuation = Opportunity

Gradient used.

U.S. equities are near their highest levels in history, based on valuation metrics. This suggests meager returns of 4-5% per year over the next decade.However, based on reversion to the mean and attractive valuations, there are several attractive asset classes.U.S. value, international, emerging markets, natural resources, MLPs and gold present opportunities.These assets have the potential […]

Uncover the Source of Your Negative Alpha

financial-review-picture-istock pic for SA article

Identifying the source of “negative alpha” in your investing is just as important as crafting a sound investment strategy and approach. My story of ill-advised market timing illustrates an example of generating negative alpha. It can be difficult to break bad investing habits, even if you have advanced investing knowledge and skill. I recommend performing […]

Is History About to Repeat?

stock market graph abstract illustration with bear and bull abstract stock exchange concept

The saying “history never repeats itself, but it rhymes,” is often attributed to Mark Twain. I recently saw a blog post from the knowledgeable and interesting financial blogger, Doug Short. In his “Market Valuation, Inflation and Treasury Yields: Clues from the Past,” he offers some interesting charts and data. The P/E 10 ratio, which shows […]