Most Recent Stingy News
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| When to retire |
| 06/03/23 9:42 PM EST | Retirement |
| "I found it's a good idea to make a list of financial benefits you want to take advantage of before you retire. You should also consider any expenses that could influence your decision. What follows are nine financial situations that might determine your retirement date." |
| More Retirement: Automatic enrollment |
| No going back |
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| Growth vs Glamour |
| 06/03/23 8:45 PM EST | Growth Investing |
| "The bottom line is that the academic definition of 'growth investing' isn't really a proper growth investment style. It is an investment style that invests in overvalued stocks. And the performance difference shown above also means that growth investing does not deserve the ridicule that is often targeted at it by academics and value investors who say that growth investors simply buy a load of glamour stocks at high valuations and then hope they will become even more expensive than they already are." |
| More Growth Investing: Interest rates and growth stocks |
| Demise of the growthsters |
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| Private equity fundamentals |
| 06/03/23 8:41 PM EST | Markets |
| "From a quantitative perspective, the fundamentals of sponsor-backed companies look frightening. Yet private equity remains the darling asset class of sophisticated investors, with many endowments and family offices nearing a 40% allocation The financial fundamentals look far less attractive than one might expect, given such high level of enthusiasm." |
| More Markets: The sin premium |
| Trend following in equities |
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| The sin premium |
| 06/03/23 8:33 PM EST | Markets |
| "Their findings are consistent with economic theory - investors require higher expected returns to hold more sinful stocks." |
| More Markets: Trend following in equities |
| The time to buy stocks |
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| Rent deceleration |
| 06/03/23 8:01 PM EST | Real Estate |
| "My suspicion is year-over-year rent increases will slow further over the coming months with slow household formation, and as more supply comes on the market." |
| More Real Estate: Extend and pretend |
| The ugly truth behind the ugly |
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| The Stingy News Weekly: May 28, 2023 |
| 05/28/23 6:11 PM EST | SNW |
| This week we have timing, trends, extending, junk, and more. |
| More SNW: The Stingy News Weekly: May 21, 2023 |
| The Stingy News Weekly: May 14, 2023 |
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| Investment junk food |
| 05/28/23 5:47 PM EST | Behaviour |
| "Easy and instant access to information is often framed as a major advantage to present day investors compared to their predecessors, but if anything we suffer from a profound information disadvantage. The benefit of improved knowledge is easily overwhelmed by the behavioural challenge of dealing with an incessant torrent of noise. Much of what investors consume is little more than investment junk food, tempting us into decisions that feel good in the moment but come with a material long-term cost." |
| More Behaviour: Outperformance, please |
| Physical finance |
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| Trend following in equities |
| 05/28/23 4:18 PM EST | Markets |
| "Japan can be used as a case study as it is ahead of the rest of the world in terms of a declining population. Economic growth has been anemic and its stock market features a long bear market between 1989 and 2010. The results from this analysis do not highlight that long-short trend following was effective when applied to the Nikkei 225, although long-only trend following generated attractive risk-adjusted returns." |
| More Markets: The time to buy stocks |
| Timing |
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| The time to buy stocks |
| 05/28/23 4:01 PM EST | Markets |
| "Sixty-one percent of U.S. adults say they have money invested in the stock market, the highest percentage Gallup has measured since 2008. Stock ownership fell during the Great Recession and stayed depressed for more than a decade, including lows of 52% in 2013 and 2016." |
| More Markets: Timing |
| The investing mystery of our age |
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| Extend and pretend |
| 05/28/23 3:45 PM EST | Real Estate |
| "Most of those are mortgages with amortizations 35 years or longer, as reported by the banks. The share of the Canadian mortgage portfolio with amortizations 35 years or longer was 25% at CIBC, RBC, and TD, respectively." |
| More Real Estate: The ugly truth behind the ugly |
| Your house is a terrible investment |
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| Timing |
| 05/28/23 3:42 PM EST | Markets |
| "Difficult as it might be sometimes, investors' best bet is to choose an asset allocation - and then to stick with it." |
| More Markets: The investing mystery of our age |
| Zero-day options |
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| The Stingy News Weekly: May 21, 2023 |
| 05/21/23 9:05 PM EST | SNW |
| This week we have momentum, volatility, value, options, commodities, and more. |
| More SNW: The Stingy News Weekly: May 14, 2023 |
| The Stingy News Weekly: May 7, 2023 |
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| The investing mystery of our age |
| 05/21/23 8:50 PM EST | Markets |
| "The paradox of our decade is that the capex needs of a multipolar, environmentally conscious, world are enormous. But, nobody wants to invest in capex for commodities! This is untenable." |
| More Markets: Zero-day options |
| Diversification |
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| Zero-day options |
| 05/21/23 8:37 PM EST | Markets |
| "Wall Street has accepted that derivatives trading will never be the same after the frenzy for fast-twitch stock options took hold. What it next has to absorb: The equity market itself is threatening to go the same way." |
| More Markets: Diversification |
| Best times to trade ETFs |
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| The ugly truth behind the ugly |
| 05/21/23 8:22 PM EST | Real Estate |
| "Now it's David's turn to refuse to walk away: He's using proceeds from the sale to continue his elder abuse lawsuit against Patriot Holdings. A trial date is set for June." |
| More Real Estate: Your house is a terrible investment |
| Starter homes gone |
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| Concentrating for factors |
| 05/21/23 7:14 PM EST | Value Investing |
| "How many stocks should you own in a concentrated factor portfolio if the goal is maximizing expected returns or Sharpe ratio?" |
| More Value Investing: Swedish Fish |
| Booms and busts in value |
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| Reducing momentum crashes |
| 05/21/23 7:08 PM EST | Momentum Investing |
| "Momentum crashes are a blight on the performance of momentum strategies. Although there has been a fair amount of research on the topic, few practical solutions have emerged to mitigate the impact on portfolios. In this study, the authors document the outperformance of momentum stocks, made somewhat 'immune' to momentum crashes , by including stocks far away from their peak position relative to stocks very near their peaks. Turns out the outperformance is very large. It also accounts for the majority of negative momentum performance." |
| More Momentum Investing: Thematic vs momentum investing |
| Mind the momentum gap |
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| Outperformance, please |
| 05/21/23 6:59 PM EST | Behaviour |
| "What's the difference between fund 1 and fund 2 that makes fund 2 so much more attractive? I can tell you it isn't the return because the two funds are designed to have exactly the same return. The key difference between fund 1 and fund 2 is that fund 1 is a frequent underperformer that sometimes has a large outperformance, while fund 2 is a frequent outperformer but sometimes suffers large underperformance." |
| More Behaviour: Physical finance |
| Financial freedom |
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| The Stingy News Weekly: May 14, 2023 |
| 05/14/23 9:27 PM EST | SNW |
| This week we have monkeys, retirement, risk, and more. |
| More SNW: The Stingy News Weekly: May 7, 2023 |
| The Stingy News Weekly: April 30, 2023 |
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| Find the bottleneck first |
| 05/14/23 8:48 PM EST | Management |
| "To understand monkeys and pedestals, imagine that you're trying to teach a monkey to juggle flaming torches while it stands on a pedestal in the town square. Two tasks are competing for your money, time, and attention: training the monkey and building the pedestal. One is a possibly intractable obstacle. And the other is building the pedestal." |
| More Management: The value of projects |
| No customer service |
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| Save more to retire earlier |
| 05/14/23 6:59 PM EST | Thrift |
| "The good news is that we can quantify how much earlier you could retire if you increased your savings rate by 1%. The bad news is that this answer also depends your current savings rate." |
| More Thrift: Rich vs wealthy |
| Saved by compounding |
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