Sunday, April 14, 2019

Monday charts

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Does 2019 look similar to 1999? 
A recent report by Empirical reviews Q1 2019 and highlights supporting data that suggests we could be entering the “New” New Economy Era. Factor returns for Q1 2019 look eerily similar to those in the 18 month run up to the peak in March of 2000 – with the following characteristics outperforming meaningfully:
1) Highest revenue growth
2) Most expensive based on forward P/E
3) Most expensive based on FCF Yield
4) Highest share dilution
5) Highest arbitrage risk
An increasing percentage of Russell 2000 companies are unprofitable.
Which categories of active managers have beaten benchmarks? (Link)
A recent study published by Fidelity shows active management beats passive in 12 of 18 investment categories (one category tied).