Capital Markets

"As Charles has shown over the years, this is the best combination for equity markets, as tight fiscal policy and loose money almost invariably leads to far higher P/E ratios. Alas, the opposite is true for the reverse: loose fiscal policy and tight money typically trigger a de-rating of equity markets. And this is the policy mix we seem to be heading towards."
Gavekal Research, December 15, 2017 , Louis-Vincent Gave

Devil’s in the Details: Robo Analysts, Financial Footnotes, and Buried Insights

"In all honesty, real fundamental analysis hasn’t mattered since before the tech bubble, but the industry is running out of ways to avoid doing this research. Consequently, what we’re seeing now is a return to fundamental research."
Prattle, December 14, 2017

Volatility (or Lack Thereof) Isn’t Predictive

"While it’s tempting to think danger lurks under still waters—and financial media provide prompts aplenty—calm periods don’t portend big price movements ahead. Nor do they herald further tranquility. Volatility—low or high; up or down—is incapable of foretelling the future."
Fisher Investments MarketMinder, November 16, 2017 , Editorial Staff

Money Machines: Understanding AI-Powered Investment Research

Prattle is pleased to publish this interview with Erez Katz, CEO and co-founder of Lucena Research, focusing on how machine… Read More
Prattle, November 16, 2017

This Is Not the Financial Crisis’s 10-Year Anniversary

10 years ago today, France’s largest bank froze three hedge funds as subprime-panicked investors fled. Headlines globally are calling this the beginning of the Global Financial Crisis, and at first blush, it certainly has all the trappings. Packaged subprime mortgages, a run on a bank, a liquidity crunch and hard-to-value assets.
Fisher Investments MarketMinder, August 9, 2017 , Elisabeth Dellinger

$106,000 for coffee? Let’s talk compounding

Most of my five children enjoy drinking coffee. Not just any old cup of joe, mind you, but a premium cup of java from one of the popular coffee chains. When they place their orders, it sounds like they’re speaking in a foreign language.
Vanguard Blog, May 25, 2017 , Fran Kinniry

Reality May Soon Overtake Post-Election Equity Rally

The reality of politics collides with the optimism of the campaign
Oppenheimer Funds, February 28, 2017 , Krishna Memani, Chief Investment Officer

Positive Feedback Loop

"Good luck being bearish on humans for any extended period of time."
Jared Dillian , Mauldin Economics, The 10th Man, March 16, 2017