The Stingy News Weekly (08/20/2017)
"A pre-specified set of nine prominent U.S. equity return anomalies produce significant alphas in Canada, France, Germany, Japan, and the U.K. All of the anomalies are consistently significant across these five countries, whose developed stock markets afford the most extensive data. The anomalies remain significant even in a test that assumes their true alphas equal zero in the U.S. Consistent with the view that anomalies reflect mispricing, idiosyncratic volatility exhibits a strong negative relation to return among stocks that the anomalies collectively identify as overpriced, similar to results in the U.S." [Academia]
"Vanguard Group is my favorite fund company - and the place where I now keep all my investment dollars. There's no mystery why: Among mutual fund companies, Vanguard has long been not only the biggest champion of index funds, but also the firm with the lowest annual fund expenses. Except that's no longer the case." [Indexing]
Insane Canadian housing numbers
"While leverage can help boost performance on the way up, it becomes very dangerous on the way down. Leverage can turn even the best investments into poor ones when things go wrong, as losses are amplified. Equity can get wiped out pretty quickly on an overleveraged asset." [Real Estate]
Auto parts retailers hit the skids
"Within a few years buying auto parts on the internet became capitalism incarnate with junkyards (car-part.com) and parts specialists (1-800-Radiator.com, LKQ Online) offering easy interfaces that let every consumer have same day service for a long list of parts. My waits became shorter, my parts bills became far cheaper, and my business with the auto parts retailers went down by nearly 80%." [Stocks]
"Because my background is in broadcasting, I've looked at the way the news shows us what the world could be like, for good and for bad, and then what that does to our brain. For instance, when you start your day with news, what does that do to you? We looked at the influence of three minutes of negative news on the brain, and what we found is if you start your day with those three minutes, it can increase your chances of having a bad day by 27%." (27% seems to be suspiciously precise.) [Behaviour]
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