stocks

The rise and rise of the global balance sheet: How productively are we using our wealth? is a fascinating report from the McKinsey Global Institute. It is full of interesting data such as national balance sheets and net worth, how these quantities developed over time and what the assets consist of. Something that really stood […]

Recent paper by Xavier Gabaix and Ralph S.J. Koijen. We develop a framework to theoretically and empirically analyze the fluctuations of the aggregate stock market. Households allocate capital to institutions, which are fairly constrained, for example operating with a mandate to maintain a fixed equity share or with moderate scope for variation in response to […]

The Fed Financial Stability Report is out and of course the media tells us that the Fed warns of excessive asset prices. Well not so fast. First of all “Given the high level of uncertainty associated with the pandemic, assessing valuationpressures is particularly challenging, and asset prices remain vulnerable to significantdeclines should investor risk sentiment […]

by John Rekenthaler… link. Astounding… the answer is not many and only the largest in the past decade

This FT piece (paywall) is actually about how the big 4 are between a rock and a hard place (US and China) when it comes to auditing Chinese companies because China does not allow financials to be submitted to PCAOB, which the US requires. The US finally seems to push back: My sympathy with the […]

Another great post from Ben Carlson. I really like this distribution of stock market returns per year showing for example that the average return of around 10% is really rather unlikely Ben has some

Fellow Breakout Investor Scott Shuda has written about year end rebalancing as a danger for the stock market. Of course against this effect is another force, namely that the largest contributions to defined plans, retirement accounts, etc happen in December as well. However, we have already seen record fund flows Further, the Economic Surprise index […]