How justified are the record P/E spreads in equity markets?

Average Price/Earnings multiples conceal an extreme level of valuation dispersion in Western equity markets. This is increasingly concerning.

Fabian Scheler

December 7, 2021

Are value stocks a good inflation hedge?

Value stocks are often assumed to have a shorter duration than growth stocks and are therefore expected to outperform during times of rising interest rates. In practice, this is all but clear.

Fabian Scheler

December 1, 2021

How many stocks sufficiently diversify a portfolio?

Many investors learn that the full benefits of diversification can be harvested with 20-30 stocks. However, it has been shown that this idea is based on a misunderstanding.

Fabian Scheler

November 3, 2021

How effective are protective puts?

Put options are often considered the gold standard in downside risk management. However, protected portfolios tend to behave very differently from textbook illustrations as this research paper shows.

Fabian Scheler

August 9, 2021