Sat.Nov 16, 2024

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The Magic of Simplicity: Joel Greenblatt’s Two-Factor Investment Strategy

Validea

In a field where complexity often reigns supreme, Joel Greenblatt’s “Magic Formula” stands out for its remarkable simplicity. Using just two variables to select stocks, this approach has produced impressive returns while challenging conventional wisdom about what it takes to beat the market. The Formula Unveiled At its core, Greenblatt’s Magic Formula combines just two fundamental factors: Return on Capital (ROC): A measure of how efficiently a company uses its assets to

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Schedule for Week of November 17, 2024

Calculated Risk

The key economic reports this week are Housing Starts and Existing Home sales. For manufacturing, the November Philly and Kansas City Fed surveys, will be released this week. -- Monday, November 18th -- 10:00 AM: The November NAHB homebuilder survey. The consensus is for a reading of 42, down from 44. Any number below 50 indicates that more builders view sales conditions as poor than good. -- Tuesday, November 19th -- 8:30 AM: Housing Starts for October.

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Research Paper Summary: “Migration” by Eugene Fama and Ken French

Validea

In a landmark paper titled “Migration,” finance luminaries Eugene Fama and Kenneth French uncover the dynamic mechanisms driving two of investing’s most studied phenomena: the small-cap and value premiums. Their findings challenge conventional wisdom and offer crucial insights for investors seeking to capture these return premiums.

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What Happens After the Top 10 Stocks Outperform?

Advisor Perspectives

The 10 largest stocks in the S&P 500 returned a staggering 104.

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Less Stress, More Success: Accounting Best Practices & Processes for 2025

Speaker: Duke Heninger, Partner and Fractional CFO at Ampleo & Creator of CFO System

Are you ready to elevate your accounting processes for 2025? 🚀 Join us for an exclusive webinar led by Duke Heninger, a seasoned fractional CFO and CPA passionate about transforming back-office operations for finance teams. This session will cover critical best practices and process improvements tailored specifically for accounting professionals.

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Real Estate Newsletter Articles this Week: Watch Months-of-Supply!

Calculated Risk

At the Calculated Risk Real Estate Newsletter this week: Click on graph for larger image. • Part 1: Current State of the Housing Market; Overview for mid-November 2024 • Part 2: Current State of the Housing Market; Overview for mid-November 2024 • NY Fed: Mortgage Originations by Credit Score, Delinquencies Increase, Foreclosures Remain Low • 2nd Look at Local Housing Markets in October • Watch Months-of-Supply!

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Saturday links: uncertainty intolerance

Abnormal Returns

Autos Used car prices have dropped in the past year. (wsj.com) Why legacy state highways are particularly dangerous. (vox.com) How VW and Rivian ($RIVN) are working together. (wsj.com) Saltwater isn't good for EV batteries. (theconversation.com) Air taxis Boeing's Wisk Aero took another step toward approval. (axios.com) China is rushing ahead of the U.S. in automated electric aircraft.

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Gold Faces Worst Week Since 2021 as Fed Signals No Rate-Cut Rush

Advisor Perspectives

Gold traded near a two-month low, on course for its worst week since June 2021 as traders wind back expectations for a Federal Reserve interest-rate cut next month.

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10 Weekend Reads

The Big Picture

The weekend is here! Pour yourself a mug of Danish Blend coffee, grab a seat outside, and get ready for our longer-form weekend reads: • How Trump Won, What Happens Next, and How Disconnects Drove Democracy : How Trump Won Through The Lens of Data, Trust, Media, and the Vibecession. ( Kyla’s Newsletter ) see also The reckoning with inflation : Many are tying the Democrat losses in the election to high inflation in recent years.