Cliff Asness

Weekend Reading: Tax Cut Wish List

"It is a simple function of math. But the following chart shows why this has likely come to the inevitable conclusion, and why tax cuts and reforms are unlikely to spur higher rates of economic growth..."

Weekend Reading: On A Cliff's Edge

"...Unfortunately, in the financial markets, irrationality historically prevails and very few investors survive the fall..."

Weekend Reading: Charged With Obstruction

No! I am not talking about President Trump but rather the crash in both Technology stocks, and Oil prices, which are obstructing the continuation of the “bull market.”

"Last Time US Stocks Were So Expensive, This Happened"

The best argument for avoiding US stocks is simple: valuation.  Using the Shiller PE Ratio (price divided by a 10 year lookback at earnings), domestic equities trade for 29.9x earnings versus a long run average of 16.7x.  The last time they were this expensive was early 2002, or 15 years ago.

Dave Collum's 2016 Year In Review - "And Then Things Got Really Weird..."

"Markets don’t have a purpose any more - they just reflect whatever central planners want them to. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable..."

Bullish Or Bearish - This Is The Real Risk

"As a money manager, I am currently long the stock market. I must be, or I potentially suffer career risk. However, my job is not only to make money for my clients, but also to preserve their gains, and investment capital, as much as possible... The real risk to investors is not “missing out” on a further rise in the markets, but catching the bulk of the reversion that will wipe out most of the gains from the previous advance."