"For much of the post-2008 period, the investment industry has been obsessed with managing volatility and avoiding drawdown"

There have been five major bear markets in the S&P since the Depression, with each one experiencing rallies along the way that turned out to be false dawns.

Stock market history can help frame your expectations.

The rise of the penguin investor: Herding into momentum-like stocks has created a chill wind for value seekers.

"One of the more surprising and enlightening findings in Robson’s book was the very low correlation between IQ and rationality – a mismatch the clinicians have named dysrationalia."

How do we think about a world of ultra-low interest rates as equity investors? To us, interest rates are much more than determining what discount rate to use in a valuation model. At extreme levels, the rate environment introduces distortions that impact management behavior and valuation tools.

"For the first time in years of quantitative publications, we argue that the usual irrelevant noise of daily fluctuations becomes now immensely informative."

SKAGEN Global looks at the rise of intangible assets, their antiquated accounting treatment and the profound impact on traditional valuation metrics.

Annual Returns for Key Indices Ranked in Order of Performance (2000–2019)

Or the costs of trying to outsmart the market

Working Paper - No. 141

(2009 - 2018)

The quest for uncorrelated returns can be an expensive pursuit, especially in terms of opportunity cost.

"Data gathered from 802 U.S. colleges and universities for the 2018 NACUBO-TIAA Study of Endowments® (NTSE) show that participating institutions’ endowments returned an average of 8.2 percent (net of fees) for the 2018 fiscal year (July 1, 2017 – June 30, 2018) compared with 12.2 percent for FY17."

1920 - 2017

"All of the wealth creation can be attributed to the thousand top-performing stocks, while the remaining 96 percent of stocks collectively matched one-month T-bills."

1950 - 2016