Sat.Nov 09, 2024

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The Critical Importance of Process Over Outcomes in Investing

Validea

Investors always focus on outcomes when evaluating their success. But that approach has a major flaw. If that outcome wasn’t generated by a sound process, then it is likely the result of luck and also likely won’t be repeatable. Consider two contrasting scenarios that perfectly illustrate a crucial lesson for investors. The first involves a day trader who experienced remarkable success during the cryptocurrency boom of 2017.

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AI Takeoff Turns Data Centers Into America’s New Building Boom

Advisor Perspectives

US companies are plowing money into building data centers as they race to get ahead in artificial intelligence.

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Five Lessons from Meb Faber

Validea

In a recent episode of the Excess Returns podcast, investment manager and researcher Meb Faber shared several thought-provoking insights about investing and wealth building. Here are five key takeaways from his discussion: 1. Rethinking Dividends Faber challenges the conventional wisdom around dividend investing, arguing that while dividends aren’t inherently bad, they shouldn’t be the primary focus of an investment strategy.

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Why Should You Choose Career-Oriented Short-Term Course After 12th?

International College of Financial Planning

The traditional path of pursuing a lengthy degree program after 12th grade is no longer the only route to success nowadays. Career-oriented short-term courses have emerged as a powerful alternative, offering students a quick and effective way to jumpstart their professional journeys. These courses provide targeted skills and knowledge, making them an attractive option for those eager to enter the workforce or enhance their employability.

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Are Robots Replacing You? Keeping Humans in the Loop in Automated Environments

Speaker: Erroll Amacker

As businesses increasingly adopt automation, finance leaders must navigate the delicate balance between technology and human expertise. This webinar explores the critical role of human oversight in accounts payable (AP) automation and how a people-centric approach can drive better financial performance. Join us for an insightful discussion on how integrating human expertise into automated workflows enhances decision-making, reduces fraud risks, strengthens vendor relationships, and accelerates R

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Martin Zweig: The Conservative Growth Master Who Built a Fortune Through Disciplined Investing

Validea

Martin Zweig may have owned one of the most expensive penthouses in Manhattan, but his path to wealth was paved with disciplined, methodical investing rather than risky speculation. Let’s examine how this legendary investor developed and executed his “conservative growth” strategy that produced market-beating returns for decades. Early Days of a Market Maven Zweig’s fascination with the stock market started early, when his uncle gifted him six shares of General Motors sto

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The Total Return Roller Coaster

Advisor Perspectives

Here's an interesting set of charts that will especially resonate with those of us who follow economic and market cycles. Imagine that five years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation? The purchasing power of your investment has increased to $17,622 for an annualized real return of 11.39%.

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Secular Market Trends: Bull and Bear Markets

Advisor Perspectives

The S&P 500 real monthly averages of daily closes reached a new all-time high in July 2024. Let's examine the past to broaden our understanding of the range of historical bull and bear market trends in market performance.

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Saturday links: why we love sports

Abnormal Returns

EVs What its like to drive a Rolls Royce EV. (theverge.com) Heavy equipment is going electric. (thecooldown.com) Autos Technology can't necessarily save us from problematic beahviors like distracted driving. (fastcompany.com) Toyota's ($TM) big bet on hybrids looks to pay off. (wsj.com) How car colors got so boring. (glennmercer.substack.com) Energy China's solar sector is booming, but profits are few and far between.

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How Active and Passive Funds Work Differently

Advisor Perspectives

Explore how these two investment types compare.

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Schedule for Week of November 10, 2024

Calculated Risk

The key economic reports this week are October CPI and Retail Sales. For manufacturing, October industrial production and the November New York Fed survey will be released this week. -- Monday, November 11th -- Veterans Day Holiday : Most banks will be closed in observance of Veterans Day. The stock market will be open. -- Tuesday, November 12th -- 6:00 AM: NFIB Small Business Optimism Index for October. 2:00 PM: Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) for October. -

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Book of Secrets on the Month-End Close

Based off SkyStem's popular e-Book, the book of secrets to the month-end close will be revealed in this one-hour webinar. Learn leading practices when it comes to building a strong and sustainable month-end close that has room to grow and evolve. Learn about the power of precise estimates, why reconciliations are critical to closing the books, how and when to automate, and how the chart of accounts play into your close process.

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Banks’ New Trick Could Mean Trouble for Everyone

Advisor Perspectives

If you’re unfamiliar with synthetic risk transfers, there’s a chance you’ll hear all about them when the next financial crisis hits. They’re the latest way for big banks to game rules designed to safeguard the system, and they’re growing fast. So far, regulators seem all but oblivious.

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What Is Shareholder Yield & Should You Invest In It?

Random Roger's Retirement Planning

Barron's interviewed Meb Faber of Cambria Investments. The main focus was the Cambria Shareholder Yield ETF (SYLD). Shareholder yield refers to " companies that are returning their cash to investors through three attributes - dividends, buybacks and debt paydown. " Investors of course love dividends but share buybacks and debt reduction are more tax efficient than dividends which are taxed at ordinary income rates.

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Validea’s Market Valuation Report: November 2024

Validea

Here is the latest update for November from Validea’s market valuation tool. Rather than focusing on market-cap weighted indexes like the S&P 500, our tool focuses on the valuation of the average stock relative to history. We use the median of our investable universe of 2700 stocks to perform the calculation. Despite the recent strong run in the market, the median stock in our database got less expensive in October as earnings have been coming in strong.

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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 Donald Trump Won Everywhere : This was the second COVID election. ( The Atlantic ) • A timeline of two years of chaos at Elon Musk’s X : The company has shed a jawdropping $35 billion in value in just two years.

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Stop Falling Short When It Matters Most—The Elite Advisor’s Playbook to Success

Like being inches from the end zone, many advisors are frustratingly close to their next level of success. You work hard. You put in the hours. But if your closing rate is stuck or your pipeline feels like a revolving door… something has to change. Most advisors are just one small shift away from dramatically increasing their revenue. The difference?