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

#Stocks do not move in a straight line, but some do exhibit an exceptional linearity, such as Rollins for example. $ROL outperformed the #SP500, with less volatility and smaller drawdowns. Bear in mind historical results are never a guarantee for future returns.

Is the #MagnificentSeven still a good bet for 2025? The Bull Case sees the #Mag7 reaching 34193 pts, a rise of 41.4% The Base Case predicts 27514 pts, an increase of 13.8% The Bear Case foretells a drop to 20574 pts, a loss of 14.9% #WallStreet #SP500

Get to know: the new S&P 500 Dividend Aristocrats Family Almost two decades after the introduction of the S&P 500 Dividend Aristocrats S&P Global launched last September the S&P 500 Quality FCF Aristocrats #SP500 #Aristocrats #Dividend #Quality @WallStreet

Since 1980 #WallStreet experienced 6 bull & bear markets Bear markets declined on average 36% in 14 months Whereas bull markets middling lasted 6.2 years and returned 333% Yet, nobody knows when the ongoing #bullmarket will end and how severe it will be #SP500 #Bonds #Commodities

Risk on, Risk off Donald Trump’s election victory was seen as the swan song for #European #Stocks Forget #MAGA, Investors want MEGA [Make America/Europe Great Again] and are now betting it could actually be the opposite #WallStreet #StocksInFocus #MarketsOnTheMove