Hints and tips:
...The frequent tendency of various factors to underperform means that “at best, factor investing is a long-term strategy”, notes the report by Elroy Dimson, Paul Marsh and Mike Staunton....
...total global stock market capitalisation in 1990, above even the US, Japan had fallen to just 6.3 per cent by 2022, while the US had swollen to more than 58 per cent, according to research by academics Elroy...
...Asset prices are a descriptive account of economic conditions, policy choices, entrepreneurial successes – and of course their failures....
...They are sitting on $3.2tn of unsold assets that they are reluctant to sell back to public markets until stock prices rise sufficiently to minimise losses or generate a profit....
...As a result of these equity market movements, India’s now trades on a price/book ratio of 3.6 and a forward price/earnings ratio of 22, according to JPMorgan’s Arora — far higher than the 1.3 times price...
...So says the invaluable Credit Suisse Global Investment Returns Yearbook prepared by economists Elroy Dimson, Paul Marsh and Mike Staunton....
...The Berkshire chief executive said that when repurchases were “made at value-accretive prices” it benefited all shareholders, pointing to investments his company made in American Express and Coca-Cola in...
...Variations in asset prices can be related to behavioural factors or leverage causing procyclicality. Long-term investors are well-positioned to take advantage of such variations....
...In America, equity valuations are very high, as measured by the cyclically adjusted price-earnings (Cape) ratio developed by Robert Shiller of Yale University, which compares share prices with the average...
...The longest that my volatility factor underperformed its index was 16 years, according to Elroy Dimson, Paul Marsh and Mike Staunton, three financial historians who dug back 121 years through performance...
...Share prices of unprofitable companies have been soaring....
...I’ve consulted two books on the subject — by John Wasik and by Justyn Walsh — and academic research by financial economists David Chambers, Elroy Dimson and others....
...Provided the former are strong and the latter ultra-low, stock prices look reasonable....
...This in turn implies a long-term break-even oil price of about $10 per barrel for gasoline to remain a competitive energy source, which is likely to lead to a significant risk of stranded assets in the oil...
...Meanwhile the share prices of low-cost passive ETF providers — especially BlackRock, State Street and Invesco — have been squeezed since 2018, when funds giant Fidelity launched free index funds....
...However, total returns (share-price moves plus income) from companies paying higher dividends beat lower yielders, according to LBS. And lower-risk businesses outperformed higher-risk groups....
...Whether either would be willing to pay much more than Berenberg’s target price of 250p is debatable, though....
...Research conducted by Elroy Dimson, Paul Marsh and Mike Staunton found that tobacco and alcohol stocks have led returns in the US and UK stock markets since 1900....
...Here it is worth looking at data from the big names in investment academia, Elroy Dimson, Paul Marsh and Mike Staunton....
...One of my favourite investment books of all time is Triumph of the Optimists by Elroy Dimson, Paul Marsh and Mike Staunton....
...Not a day when markets are open passes without someone making a prediction about economic growth, and what it will mean for the direction of asset prices....
...the uninitiated, this week saw a big annual event in the calendar of devoted market-watchers with the publication of the Global Investment Returns Yearbook, produced for Credit Suisse by the academics Elroy...
...Elroy Dimson, Paul Marsh and Mike Staunton of the London Business School have shown how in 1900 over 60 per cent of the value of listed US equities was in rail....
...The cyclically adjusted price-earnings multiple (CAPE) advanced by Robert Shiller of Yale University is scarily accurate over 10 years....
...Schroders’ analysis has parallels to longer-term analysis compiled by Elroy Dimson, Paul Marsh and Mike Staunton of the London Business School....
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