The Stingy News Weekly: 01/09/2022
New from Norm
Asset Mixer Update
We've updated our Asset Mixer to include nominal data for 2021.
Periodic Table Update
We've updated our periodic table of annual returns for Canadians to include nominal data for 2021.
Factor Olympics Q4 2021
"It is easy making the case that we are currently at the peak of the current market cycle, eg by pointing to the sale of an invisible rock NFT for $12,800. However, the same position could have been taken in 2017 when the Argentinian government sold 100-year bonds shortly after resolving its latest sovereign default. The good times can not continue forever, but short-term predictions are futile. A more nuanced argument is that there has already been a change in the investment sentiment that is reflected in the factor rotation from momentum to value stocks." [Markets]
"On average, affiliated ETFs charged 6 bps higher expense ratios and generated 67 bps lower net year-to-date returns than unaffiliated funds (significant at the 1 percent confidence level). Their past performance, measured by the performance-rank percentiles over the previous one and three years, was also five and six ranks lower, respectively." [Funds]
Picking funds and indices
"Unfortunately, the natural desire to allocate more money to better-performing asset classes turns out to be exactly the wrong instinct. While asset classes exhibit short-term (one-year) momentum, they tend to mean revert over the long term, as shown in the chart below." [Funds]
Growth stocks sell off
"If growth stocks sell off will they bring value stocks down with them?" [Markets]
S&P/TSX60 Value Screens
DOW 30 Value Screens
|Disclaimers: Consult with a qualified investment adviser before trading. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, financial advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. More...