Hints and tips:
...This, however, brings us back to Rob Arnott of Research Affiliates, who we quoted last week....
...He added his “faith had been tested” in Burford but said: “This doesn’t feel like the right time to sell....
...Robert Arnott of Research Affiliates, one of the leading figures in the field, calls it the “granddaddy of factors”....
...And the investment firm founded by Rob Arnott is not the only one that is growing increasingly gloomy....
...The investment system he described sounded like another alternative weighting approach, such as those offered by Global Wealth Allocation or Rob Arnott’s Research Affiliates (see Vinculum puts faith in data...
...Stock market bubbles and crashes have subsequently eroded faith in this hypothesis but its insights encouraged the first pioneering efforts to develop US market-wide index funds for pension funds in the...
...Rob Arnott is chairman of Research Affiliates...
...However, such faith in equities could be tested as volumes and activity picks up this month....
...Arnott’s figures show that as Wall Street opened on Friday it was already dealing with the second biggest six-month decline in its history....
...The Lehman collapse shattered that pillar of faith, leaving market participants unsure as to what they could trust or value....
...And Bernstein warned in Against the Gods, written a decade before the crisis broke: “Our faith in risk management encourages us to take risks that we would not otherwise take....
...Mr Stewart was articulating a broad sense of betrayal among the populace that the faith all had been told to put in equities had been misplaced. That loss of faith spreads beyond retail investors....
...Other factors matter beyond earnings, but this is hard to explain unless the market is putting a lot of faith in earnings to bounce back. That appears to be the case....
...This ties in with a final theme that has sustained equities: faith in the story of secular growth in the emerging markets remains intact....
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