Today Bank of America released its annual "Institutional Factor Survey", i.e., questionnaire targeting market quants (but not only), which seeks to assess which factors and attributes are most important in the current environment to clients in selecting securities.
In late 2015 and early 2016, as oil crashed, a curious divergence emerged: as crude was dropping, junk bonds crashed with a far greater beta to the drop in the underlying commodity than equities, which remained persistently sticky, stubbornly refusing to drop to a "fair value" implied by oil. The same phenomenon was even more obvious on the way up, as once oil had found a "bottom" energy stocks surged, at times approaching record forward P/E multiples.
The “Trump trade” in U.S. stocks that was spurred by President Donald Trump’s November election has come and gone, according to Tony Dwyer, Canaccord Genuity Group Inc.’s chief market strategist.
Authored by 720Global's Michael Lebowitz via RealInvestmentAdvice.com,
“The individual investor should act consistently as an investor and not as a speculator.“ – Ben Graham.
Dear reader, if you are overcome with fear of missing out on the next stock market move; if you feel like you have to own stocks no matter the cost; if you tell yourself, “Stocks are expensive, but I am a long-term investor”; then consider this article a public service announcement written just for you.