Page 1 of 10 1234567 ... LastLast
Results 1 to 10 of 95

Thread: Investing strategies

  1. #1
    Join Date
    Jan 2017
    Posts
    1,157

    Default Investing strategies

    http://www.theglobeandmail.com/globe...ticle34492244/

    Blackrock has fired a few stock pickers and hired quants.

    Active management of funds is dying, but not because it is too hard to beat
    the market. It is the opposite: it is too easy. However, the fund managers
    keep the profits for themselves, with fat fees.

    Index providers have turned management styles, like value, growth, momentum,
    into shockingly simple indexes, run by computers. These indexes have beaten
    the markets and are widely available, at low cost.

    Smart beta proved to be a popular alternative to active management.

    Even the best stock pickers will struggle to keep up with the bots.

  2. #2

    Default

    This is just the beginning. In about 10 years the ER industry will have been significantly consolidated. Several guys I know jumped ship because they say they can't see a light at the end of the tunnel. In the short run it's not true, but in the long run it probably is. Anyway, programming has made it easier for 1 analyst to do the jobs of 2 or 3 analysts... This has led to more jobs hiring quants (quantitative analysts). They are extremely good at programming, statistics, and other kinds of math.

  3. #3
    Join Date
    Apr 2017
    Posts
    8

    Default

    In fund, a venture system is an arrangement of tenets, practices or methodology, intended to direct a financial specialist's determination of a speculation portfolio. People have diverse benefit goals, and their individual abilities make distinctive strategies and procedures appropriate.Some decisions include a tradeoff amongst hazard and return. Most speculators fall some place in the middle of, tolerating some hazard for the desire of higher returns.

    6 common investment strategies of fund managers
    Top-down investing
    Bottom-up investing
    Fundamental analysis
    Technical analysis
    Contrarian investing
    Dividend investing

  4. #4

    Default

    Quote Originally Posted by PeatearDavid View Post
    In fund, a venture system is an arrangement of tenets, practices or methodology, intended to direct a financial specialist's determination of a speculation portfolio. People have diverse benefit goals, and their individual abilities make distinctive strategies and procedures appropriate.Some decisions include a tradeoff amongst hazard and return. Most speculators fall some place in the middle of, tolerating some hazard for the desire of higher returns.

    6 common investment strategies of fund managers
    Top-down investing
    Bottom-up investing
    Fundamental analysis
    Technical analysis
    Contrarian investing
    Dividend investing
    The hybrid approach, a combination of top-down and bottom-up, should also be added to that list.

    My personal investment style is a hybrid approach, but I like to be contrarian too sometimes. I'm not contrarian for the sake of being contrarian... I do industry, economic, and company research to determine drivers of revenue and to help with determining growth rates. Then I take financials study them, make necessary adjustments to them, and then project them forward 3 years to forecast FCFF then do DCF analysis to determine a stock price.
    Last edited by Ellinas; 04-06-2017 at 10:20 AM.

  5. #5
    Join Date
    Jan 2017
    Posts
    1,157

    Default

    A short history of smart beta
    --------------------------------

    In 1960's CAPM (Capital Asset Pricing Model) suggested that stock
    returns were related to risk. That considered how much a stock was
    sensitive to market volatility.

    The model explained maybe 70 % of the results.

    In the 1990's Fama and French created a model with two additional FACTORS:
    VALUE and SIZE. The Value factor is well known from Graham and Buffett.
    The Size factor -it was observed that small companies performed better
    than large companies.

    These three FACTORS explained cca 95 % of the results.

    Presently other FACTORS are introduced: MOMENTUM, QUALITY, LOW
    VOLATILITY.

    There are many ETF's investing by a combination of FACTORS.
    They are called "smart beta ETF's" and are the most significant
    trend in ETF investing.

    http://canadiancouchpotato.com/2016/...of-smart-beta/

  6. #6

    Default

    CAPM and Fama-French aren't meant to be used alone, and it wouldn't be wise to do so. They give you an estimated required rate of return on a stock or cost of equity for a company. Once you have that required return you need to figure out if the security is overvalued or undervalued. That being said, you need to know how to use these with other valuation methods.

  7. #7
    Join Date
    Jan 2017
    Posts
    1,157

    Default

    Quote Originally Posted by Ellinas View Post
    CAPM and Fama-French aren't meant to be used alone, and it wouldn't be wise to do so. They give you an estimated required rate of return on a stock or cost of equity for a company. Once you have that required return you need to figure out if the security is overvalued or undervalued. That being said, you need to know how to use these with other valuation methods.
    You can use eg a Fama-French factor regression analysis:

    https://www.portfoliovisualizer.com/factor-analysis

  8. #8
    Join Date
    Jan 2017
    Posts
    1,157

    Default

    Less investment in the stock markets
    ------------------------------------------

    The wealthy invest: 28 % in real estate, 21 % in private equity
    and 19 % in public equity.

    http://www.theglobeandmail.com/globe...ticle34668657/

    My note: With so much HFT (High Frequency Trading), algos,
    quants, and other forms of speculation....it is not surprising that the
    wealthy prefer other avenues for investments.

  9. #9
    Join Date
    Jan 2017
    Posts
    1,157

    Default

    Alternative investments
    --------------------------

    The volatility in stock markets scared many investors, which prefer
    a more tranquil life and predictable returns. Retirees are for sure
    like that. That is why alternative investments attract more and more capital.

    Here it a list of alternative investments:
    http://www.innovativewealth.com/alte...-stock-market/

    Actually alternative investments started as an alternative to public markets.
    However, there are some listed on the public markets, like hedge funds
    (which invest in stocks and bonds eg), managed futures, real estate,
    commodities, derivatives...

    There is even a designation of Chartered Alternative Investments
    Analyst.

    http://www.investopedia.com/terms/a/...investment.asp

  10. #10
    Join Date
    Jan 2017
    Posts
    1,157

    Default

    What stocks are more profitable: cheap stocks or expensive stocks ?

    The data show us that expensive stocks are more profitable,
    on a percentage basis. Eg: below are two portfolios with stocks
    between 250-500 and stocks between 500-1,000 $. They both
    have an annualized return of around 18 % for 10 years.

    http://www.buyupside.com/sample_port...50500share.php
    http://www.buyupside.com/sample_port...0plusshare.php

Page 1 of 10 1234567 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •