BBRG: Financial Crisis Killed Hedge-Fund Performance

The Financial Crisis Killed Hedge-Fund Performance The industry never came back from the “Great Reset,” the huge sell-off during the first quarter of 2009. Bloomberg, September 17, 2018     I mentioned last week I was perplexed by the idea that Hedge Funds, who as a group had generated reasonable (but expensive) out performance pre-crisis… Read More The post BBRG: Financial Crisis Killed Hedge-Fund Performance appeared first on The Big Picture.

5 Years On . . .

On September 15, 2013, exactly 5 years ago, four of us took a leap into the unknown to launch RWM. Perhaps a few words on this crew, and how this all came together, is worth sharing. Take whatever lessons from these experiences that you may. My own journey to asset management came about because I… Read More The post 5 Years On . . . appeared first on The Big Picture.

The Kids Aren’t Alright

Millennials Are Sitting Out the Bull Stock Market The financial crisis left scars that have yet to heal. Bloomberg, September 5, 2018       What has happened to the generation of investors that came of age in the middle of the worst financial crisis since the Great Depression? The evidence suggests their experiences scarred… Read More The post The Kids Aren’t Alright appeared first on The Big Picture.

BTV: Debating the Future of the U.S. Bull Market

Fun debate with Nir over the length of the bull market, although we are more sympatico about the bigger issues than the debate suggests.   Debating the Future of the U.S. Bull Market Source: Bloomberg, September 7th, 2018 Bloomberg Opinion columnists Nir Kaissar and Barry Ritholtz debate the bull market and discuss the 10th anniversary… Read More The post BTV: Debating the Future of the U.S. Bull Market appeared first on The Big Picture.

Where Will The Next Crisis Come From?

Jeffrey Kleintop, the Chief Global Investment Strategist at Schwab, created this wonderful chart (below) showing the various sources of global market turmoil. He hints at something very interesting, writing: “Shocks to the global system happen all the time. Many of these shocks are absorbed by the system without much disruption.” Why them do some shocks lead… Read More The post Where Will The Next Crisis Come From? appeared first on The Big Picture.

Where Will The Next Crisis Come From?

Jeffrey Kleintop, the Chief Global Investment Strategist at Schwab, created this wonderful chart (below) showing the various sources of global market turmoil. He hints at something very interesting, writing: “Shocks to the global system happen all the time. Many of these shocks are absorbed by the system without much disruption.” Why them do some shocks lead… Read More The post Where Will The Next Crisis Come From? appeared first on The Big Picture.

Markets Don’t Care About News

Ben Carlson wrote a wonderful analysis about one of my favorite subjects: Why StockMarkets Don’t Care About the News. Ben breaks it down into 5 specific categories: 1. Markets don’t care who the president is. 2. Expectations matter more than the news itself. 3. The flow of information is mind-boggling. 4. We are pattern seeking creatures. 5.… Read More The post Markets Don’t Care About News appeared first on The Big Picture.

Bloomberg: One Big Reason to Doubt Tech Has a Liberal Bias

One Big Reason to Doubt Tech Has a Liberal Bias Above all, Silicon Valley’s denizens are capitalists and don’t want to alienate potential customers. Bloomberg, August 27, 2018.       We had some friends over for some swimming and a barbecue this weekend. She works in information technology, he is an insurance lawyer. They have… Read More The post Bloomberg: One Big Reason to Doubt Tech Has a Liberal Bias appeared first on The Big Picture.

Death of Active Management Has Been Greatly Exaggerated

Active Money Management Isn’t Dead Yet There are five niches that should survive Bloomberg, August 13, 2018       There’s a line of argument in the financial press that suggests that active money management is dying, a victim of high fees and underperformance versus low-cost indexing that captures average market returns.1 Newsflash: This is… Read More The post Death of Active Management Has Been Greatly Exaggerated appeared first on The Big Picture.

Survivorship Bias on Wheels

Source: Medium   All you need is some cash, a good mechanic — and a time machine —  and you too can beat the broader indices. Or not. Regular readers know of my affinity for beautiful automobiles. Whenever I find a gorgeous rolling sculpture, or a high-horsepower performer, or simply a lovely cruiser that tickles… Read More The post Survivorship Bias on Wheels appeared first on The Big Picture.

“Active Money Manager Model Is No Longer Viable”

Jim Bianco, one of my favorite market analysts/researchers, points out that the “active money manager model is no longer viable.” He explains: “The chart [below] shows flows into passive ETFs (red) and active mutual funds (blue). Highlighted on the chart is the depth of the financial crisis, September 2008. This appears to be the inflection… Read More The post “Active Money Manager Model Is No Longer Viable” appeared first on The Big Picture.