Most Recent Stingy News
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The Stingy News Weekly: March 17, 2024 |
03/17/24 8:44 PM EST | SNW |
This week we have momentum, small caps, working, and more. |
More SNW: The Stingy News Weekly: March 10, 2024 |
The Stingy News Weekly: March 3, 2024 |
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Seven reasons to work |
03/17/24 7:00 PM EST | Retirement |
"Before you dive into the world of endless vacations and gardening, consider that keeping a toe - and perhaps your whole foot - in the workforce might be the secret ingredient to a fulfilling retirement." |
More Retirement: A Protestant retirement ethic? |
Faulty assumptions |
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Momentum works everywhere |
03/17/24 6:28 PM EST | Momentum Investing |
"Across a diverse set of global equities and multiple market capitalizations, we conducted an analysis of 32 distinct long-only factors, including momentum, value, growth, quality, and the market. Notably, momentum demonstrated exceptional performance, surpassing the respective market return in 100% of the samples." [pdf] |
More Momentum Investing: Breaking bad momentum trends |
A momentum crash course |
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Sclerotic small caps |
03/17/24 6:23 PM EST | Markets |
"We think the changing composition of industries and quality among the small-cap universe is more to blame for weaker recent returns to small caps rather than a structural change in the upward mobility for small-cap equities." |
More Markets: Global Investment Returns Yearbook 2024 |
Cost of capital and capital allocation |
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Breaking bad momentum trends |
03/17/24 6:22 PM EST | Momentum Investing |
"Crashes occurred particularly in reversals from bear markets when the momentum portfolio displayed a negative market beta and momentum volatility was high. Fortunately, the empirical evidence has found that crashes were at least partially predictable and that the predictability and thus the performance of momentum strategies can be improved by employing systematic strategies." |
More Momentum Investing: A momentum crash course |
Moving average distance and momentum |
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Noisy factors |
03/17/24 6:19 PM EST | Value Investing |
"A Nobel laureate's theory supports betting on cheaper stocks and sets a benchmark for money managers. But the numbers keep changing. How much does it matter?" |
More Value Investing: Japan's orphans |
Valuing Japan's reform |
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Different this time? |
03/17/24 6:08 PM EST | Economy |
"Hence, I join Cam Harvey (who brought to prominence the yield curve as recession predictor) who says it's too early to drop the recession call." |
More Economy: Good economic news |
Americans are getting richer |
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The Stingy News Weekly: March 10, 2024 |
03/10/24 4:06 PM EST | SNW |
This week we have the yearbook, momentum, millionaires, and more. |
More SNW: The Stingy News Weekly: March 3, 2024 |
The Stingy News Weekly: February 25, 2024 |
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Global Investment Returns Yearbook 2024 |
03/09/24 3:26 PM EST | Markets |
"Today, the US market dominates its closest rival and accounts for a staggering 60.5% of total world equity market value. Japan (6.2%) is in second place, the UK (3.7%) in third position, while Mainland China is ranked fourth (2.8%). France, Canada, Switzerland, Australia, Germany and India each represent 2-3% of the global market, followed by Taiwan with 1.7% and South Korea with a 1.4% weighting." |
More Markets: Cost of capital and capital allocation |
Stocks (and bonds) for the long run |
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Cost of capital and capital allocation |
03/09/24 3:21 PM EST | Markets |
"There is an old saying that 'in theory there is no difference between theory and practice, while in practice there is.' One area where this appears to be true is the actions of public companies in the U.S. during the recent period of 'easy money,' when financial capital was cheap and abundant." |
More Markets: Stocks (and bonds) for the long run |
The low-volatility factor |
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Stocks (and bonds) for the long run |
03/09/24 3:12 PM EST | Markets |
"Outside the post-World-War years from 1941 to 1981 stocks in the US did not outperform bonds by any meaningful margin. Let me repeat that: Apart from the four decades to the 1980s, stocks did not systematically outperform bonds. Sometimes stocks outperformed bonds, sometimes bonds outperformed stocks" |
More Markets: The low-volatility factor |
The blue and yellow can |
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A momentum crash course |
03/09/24 2:22 PM EST | Momentum Investing |
"Interestingly, the high-yield spread is not a particularly useful predictor of the forward returns of the 'winner' portfolio. Rather, it significantly predicts momentum crashes by identifying when the 'loser' portfolios will experience positive reversals." |
More Momentum Investing: Moving average distance and momentum |
Momentum review |
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Can the typical person become a millionaire? |
03/09/24 2:15 PM EST | Thrift |
"So, can the typical person become a millionaire? Not if they take typical actions." |
More Thrift: Thoughts on spending money |
Overrated things in personal finance |
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Graphing Dividends 2024 |
03/06/24 6:45 PM EST | Stingy Investing |
"I've written many articles highlighting the big returns generated by Canadian dividend stocks. They usually include only one or two graphs due to space limitations. But I've given the extra graphs a home here for the enjoyment of dividend aficionados." [pdf] |
More Stingy Investing: The Globe's Dividend All-Stars |
The Globe's Dividend All-Stars |
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The Stingy News Weekly: March 3, 2024 |
03/03/24 2:14 PM EST | SNW |
This week we have dividends, retirement, losses, and more. |
More SNW: The Stingy News Weekly: February 25, 2024 |
The Stingy News Weekly: February 17, 2024 |
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The case for and against dividend ETFs |
03/03/24 1:42 PM EST | Dividends |
"Unlike stock prices, which move based on the whims of market participants, dividends are set by company management and have been far more stable than prices historically. My favorite example of this comes from The Great Depression where monthly prices declined by nearly 90% (from peak to trough) but dividends weren't even cut in half." |
More Dividends: Volatility, dividend yield and stock returns |
Dividend impact on stock returns |
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Don't cut your losses? |
03/03/24 1:09 PM EST | Momentum |
"'Cut your losses' is not a good strategy, as it underperformed the benchmark buy-and-hold portfolio. As Baur and Dimpfl noted, 'Losing stocks rarely continue to fall, which is not surprising in a world where stock markets rise and economies grow on average. In other words, if a rising tide lifts all boats, a cut-your-losses strategy cannot work.'" |
More Momentum: Short-term momentum |
A gut punch |
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Comfort has a cost |
03/03/24 12:26 PM EST | Bonds |
"In the financial markets, you'll typically pay a high price for certainty. That price is paid in lower investment returns, and sometimes also in greater financial hassles. Yet I see investors paying that price again and again." |
More Bonds: Yield is not return |
Ask what your credit quality pays |
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Rule, Britannia |
03/03/24 12:12 PM EST | World |
"We think a long-term bet on upward mean reversion for Europe should also include a cap-weighted allocation to the UK because discounts are greater in Britain. UK stocks represent around 24% of aggregate tickers in the combined investment opportunity sets of the UK and Europe." |
More World: The right level of inflation |
Adding China? |
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The Globe's Dividend All-Stars |
03/03/24 11:30 AM EST | Stingy Investing |
"We're pleased to present the Globe's Dividend All-Stars, which highlights the best dividend-paying stocks on the Toronto Stock Exchange (TSX). It includes a wealth of information on the 200 largest companies in the land for bargain seekers and income investors alike. Each stock is measured up for its overall investment appeal and the top 20 five-star stocks make it into the Dividend All-Stars portfolio." |
More Stingy Investing: The Globe's Dividend All-Stars |
The Globe's Top 20 Dividend All-Stars |
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A Protestant retirement ethic? |
03/03/24 11:19 AM EST | Retirement |
"Moshe Milevsky and Marcos Velazquez have identified one area where there is an advantage to being a Protestant, or at least living in a heavily Protestant society. They document a statistically significant relationship between the share of Protestants living in a country and the quality of the pension system in that country." |
More Retirement: Faulty assumptions |
Fire meets ice |
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