Investing

Red Flag for Mortgage Underwriting

17 years ago
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CalculatedRisk describes the evolution of the underwriting process for alt-a (just below prime) and subprime (junk status) mortgage loand.  It is a dense read, but to me clearly makes a case that it would be imprudent at this time to invest in mortgage backed securities that include alt-a or [...]

Subprime Credit Crunch Could Trigger Collapse

17 years ago
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Subprime mortgages are in trouble. Aaron Krowne espects to see a lot of lenders hurt by this and possible affects in the Alt-A and prime mortgage markets as well.

Rewriting History

17 years ago
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A flare up occurred in December about the integrity of Thomson’s IBIS database of analyst recommendations. Some researchers got a feed covering analyst recommendations from 1993 to 2002 in 2002 and then got the same feed again in 2004 (i.e., covering the same 1993-2002 period). They discovered that [...]

Ed Easterling – Projecting Returns after 2006

17 years ago
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This article on projecting the next decade’s returns by Ed Easterling of PE cycles fame, came out last November. While I often disagree with some of his solutions, he provides valuable insight into future returns. Highlights GDP growth is fairly consistent at around 3% Corporate earnings as a [...]

US retail investors look overseas

17 years ago
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Performance chasing is alive and well.  I suspect if international and especially emerging market stocks had not done so well for the last few years we would not be seeing this trend. The Financial Times reports that last year, a remarkable 92.5 percent of all US equity fund inflows went into [...]

Fama Factors Out French: “I Did All The Work”

17 years ago
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If you are familiar with the Fama French three factor model (i.e., value and small premiums), you should enjoy this bit of industry humor.

Moral Hazard of Emerging Market Debt Spreads

17 years ago
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The Economist looks at the moral hazard for emerging market countries that is being created by the low spreads on their bonds. In the global market’s desperate search for higher yields, the spreads on emerging market debt have declined precipitously. Even countries like Argentina which purposely [...]

Song about today’s investment landscape

17 years ago
in ,
Light fare for today. Here is some entertaining commentary on today’s investment environment. Make sure you watch it through the song. http://www.yieldsz.com/

New bond and international ETFs

17 years ago
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A bunch of new bond ETFs and one international ETF are out or coming out soon. Vanguard will be introducing four low-cost bond ETFs that pair up with the following bond funds: Total Bond Market Index Fund Short-Term Bond Index Fund Intermediate-Term Bond Index Fund Long-Term Bond Index Fund The [...]

Outsmarting the Market

17 years ago
in
Today is blue Monday (a.k.a. the saddest day of the year), so I thought I would distract everyone and get their blood pumping a bit by sharing some thoughts on a controversial subject. There has been a meme going around the industry recently about the need to be more active in asset allocations. [...]
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