Widening the view #FactorInvesting works better with European #Stocks than American Lower economic growth > lower corporate profits > lower #StockMarket returns > greater need for generating excess return > more focus on distinct factors #Value #Size #Momentum #LowVol #Quality

The performance of different asset classes by decade from the 1950s to 2023 In the first 4 years of this decade U.S. large cap equities have earned 12% return, making it so far, the most profitable asset class in the 2020s. #SP500 #Bonds #Gold #Oil #WallStreet

As goes January, so goes the year The January indicator is a statistical oddity as it lacks scientific evidence For 2024 January's return foretells a great year for the #SP500 If it turns out differently, there are three kinds of lies: little lies, damned lies and statistics

Estimating future drawdowns Sooner or later markets are going to be hit, but how hard? Rule of thumb: drawdown = 3.3 x sigma #SP500 #Correction #BearMarket #WallStreet

Momentum is the premier market anomaly and contradicts the strategy of buying low and selling high The #momentum factor prevails in the market due to irrational behavioral biases of investors such as herd mentality, fear, greed and confirmation bias #SP500 #WallStreet

The more #Volatile your #Equity #Investments, the more you benefit from #Diversification By including different #AssetClasses, you increase the probability that your investments will provide satisfactory returns Yet, diversification does not solve the lack of knowledge

In theory a stock split compares to cutting a piece of cake. It doesn’t impact a company’s fundamental position and therefore creates no additional value In practice the number of shares outstanding increases. This will boost its stock’s liquidity #WallStreet $NVDA

Although there are regional differences in the first half of 2024, #Momentum stocks outpaced the broad market, and #Quality became a momentum trade. #LowVolatility is along with Enhanced #Value the worst performing factor. #SP500 #WallStreet #European #StockMarket

Concentration vs Diversification Apparently Harry Markowitz found a free lunch in finance #Diversification involves investing across various assets #Concentration focuses on a limited number of assets What wins in the long term: Index fund or Top 10 S&P stocks? #WallStreet #SP500

On Monday the #Nikkei dropped 12%, marking its largest decline since 1987 The fear gauge surged to levels not seen since the Global Financial Crisis Japan’s market turmoil led shares in Europe and New York lower, with American investors notably more concerned #SP500 #VIX #STOXX