Value and small caps outperformance: Logic, Evidence and Cost

Value and small caps outperformance: Logic, Evidence and Cost

Value and small caps, to which the Dimensional equity funds in MoneyOwl’s portfolios are tilted, have been massively outperforming for more than 6 months since the third quarter of 2020. From August 2020 to February 2021, MSCI World Value Index returned 16.1% vs 7.8% for the MSCI World Growth Index, while MSCI World Small Cap […]

Value and small caps outperformance: Logic, Evidence and Cost

Bond Yields Spiking? Why you can be as cool as the Fed

Whether the stock market is going up, down or sideways, there is always a reason to worry about it. Psychologists call this the negativity bias that keeps us hooked on bad news and the media, including the financial media, knows it. Last week, a new reason was found in the quick spike in bond yields, […]

Odds In Your Favour

Odds In Your Favour

There is a Singapore tradition of a huge Hongbao Toto Draw during the Chinese New Year season, for prizes of an eye-watering quantum that can be $10 million or more. Some years, you can even reserve bundled packs of tickets beforehand. Will you be buying a ticket? I did so some years ago as part […]

Value and small caps outperformance: Logic, Evidence and Cost

The Tech Sell-Off and the Korean Boy Band IPO

Was last week the time of reckoning for the stock markets? For those who worry that investors have been irrationally exuberant, two pieces of news over the past week might make them seem right. The first is the market sell-off in technology stocks towards the end of the week. The US S&P500 fell 2.3% in […]

Build An Ark, Don’t Predict The Rain

Build An Ark, Don’t Predict The Rain

My son is named Noah, after the biblical prophet who built an ark out of faith. One of Warren Buffett’s lesser-known quotes is based on Noah’s story: “Predicting the rain doesn’t count; building arks does.” Buffett was giving advice about running businesses, but the same applies to investing and financial planning. Many active investment managers […]