Search results for: klement dumb alpha
Two critiques of environmental, social, and governance (ESG) investing have a truthiness quality to them.
Stop losses may not enhance returns, says Joachim Klement, CFA, but they enhance client well-being, and in the end, they may keep a client from selling what is otherwise a great long-term investment.
If investors want to engage in tactical asset allocation, what would be the Dumb Alpha method of doing so? Joachim Klement, CFA, provides his advice.
One of the symptoms of middle age is that you start to give advice to younger people on what your experience has taught you about life. So Joachim Klement, CFA, puts his imaginary pipe into his mouth, adjusts his glasses, and explains why keeping it simple might be the most important "dumb alpha" lesson he has learned in his investing career.
An exploration of the potential fintech effect by Larry Cao, CFA; Julia VanDeren's examination of executive presence; Tadas Viskanta's analysis of market-related risks arising from global warming; and the latest installment in the Dumb Alpha series by Joachim Klement, CFA, were among the leading posts from Enterprising Investor in October.
Instead of being motivated by the rule “Don’t just sit there, do something,” investors might instead act based on the rule “Don’t just do something, sit there,” says Joachim Klement, CFA, in the latest edition of his Dumb Alpha series.
Instead of creating complex multilinear factor regressions, investors can outperform the market simply by selecting the stocks with the smoothest return profile — good, old, boring stocks that show no drama and a lot of stability, writes Joachim Klement, CFA.
Highlights from last month include examinations of the CAPE ratio and forward P/E earnings by Joachim Klement, CFA; Matthew Borin's analysis of a recent Take 15 talk with Dan Ariely; an interview with C. Thomas Howard about the state of active management by Jason Voss, CFA; and a somewhat alarming take on the long-term implications of the low interest rate environment on the viability of banks and insurance companies by David Schawel, CFA.
In the spirit of dumb alpha, we can say that simple trailing P/E ratios are far better value indicators than forward P/E ratios. Or as I tell my colleagues at work: Never ever use forward P/E ratios. Ever.
Standout stories from the last month include the latest entry in the Alpha Wounds series by Jason Voss, CFA, in which he analyzes the lack of independent judgment among active managers; Matthew Borin's examination of the recent Brexit vote and its fallout; and Ron Surz's piece explaining how successful advisers are like successful waiters.