Category Archives: Equities

Bubbles and Housing

Home prices nationally are rising two to three times faster than inflation. They are up 5.5% from a year ago with some cities rising at double-digit rates. Looking at the chart of the S&P Corelogic Case-Shiller Home Price Indices, many are wondering if we’re in another housing bubble. While prices are rising, the following charts Read more […]

Australian Markets: Mid Caps a Sweet Spot for Investors

We have previously taken a dive into performance differences between Australian market cap segments and observed that mid caps offer a “sweet spot” for market participants.  Year-to-date, this message continues to resonate—the S&P/ASX MidCap 50 has returned 10.1% as of July 13, 2017.  Meanwhile, corresponding large-, small-, and broad market indices have returned measurably less Read more […]

When Market Timing Is Unusually Pointless

Among the many themes to have emerged in U.S. markets during the first six months of 2017, low volatility in equities and changes in the global interest rate environment—some realized and some anticipated—were particularly important drivers.  In a similar vein to our summary on Europe, here are some thoughts on these trends. The potential rewards Read more […]

Tips and Tricks in Reading the Persistence Scorecard

Much has been written about the persistence of manager performance.  The S&P Persistence Scorecard attempts to track the status of top quartile and top half managers over specified subsequent periods.  Over the years, we have received a fair amount of inquiries from our readers regarding the computation, methodology, and interpretation of results.  This blog attempts Read more […]

Embracing the globalization of Chinese equities

For being the second largest capital market and the second largest economy in the world, China is underrepresented in most of the international benchmarks, which is unparalleled with its significance to the world economy. With increased access to the Chinese domestic equities market, one of the largest index compilers received broad support from international investors Read more […]

Most S&P and Dow Jones Islamic Indices Outperform Conventional Benchmarks in 2017

Most S&P and Dow Jones Shariah-compliant benchmarks outperformed their conventional counterparts year-to-date through June 28, 2017 as Financials – which are largely absent from Islamic indices – have lagged the broader market, and Information Technology and Health Care – which tend to be overweight in Islamic Indices – have been the two top performing sectors Read more […]

Confusing Means and Ends

This morning’s Wall Street Journal informs us that the growth of exchange-traded funds has “propelled” this year’s surge in equity prices.  “Booming demand for passive investments is making exchange-traded funds an increasingly crucial driver of share prices….Surging demand for ETFs this year has to an unprecedented extent helped fuel the latest leg higher for the Read more […]

Capital Market Performance during Three Years of Narendra Modi Government

On May 16, 2014, Lok Sabha election results were announced and India gave a clear mandate to Narendra Modi’s Bharatiya Janata Party to form the government.  Narendra Modi was sworn in as the 14th Prime Minister of India on May 26, 2014, and his government recently completed three years of being in power.  In these Read more […]

The Much-Maligned Market Portfolio

It seems generally acknowledged that no investment strategy should be expected to offer an optimal trade-off between return and risk in all periods.  Yet I often hear criticism of market-cap weighting, presumably because modern portfolio theory (MPT) postulates a hypothetical market portfolio as efficient in the mean-variance sense.  Financial engineers, product developers, and asset managers Read more […]

The Growth of Small Caps in India

Over the past few decades, Indian capital markets have matured, and a large number of Indian market participants are now looking at capital markets as an investment avenue.  Investment in capital markets has grown substantially among all types of market participants—retail, institutional, and even government institutions, where recently the Employee Provident Fund Organization has started Read more […]