Cliff Asness

Weekend Reading: Ignorance Is No Excuse

The “tax bill cometh.” According to the press, this is going to be the single biggest factor to jump-starting economic growth since the invention of the wheel... but “ignorance is no excuse.”

The Running Of The Japan Bears

Renowned investor and manager of the Yale endowment, David Swensen, recently highlighted his newfound enthusiasm for Japanese markets: “There are some very interesting things going in Japan, one of the places I’m most optimistic about. It seems like capitalism might actually be taking root, making progress there.”

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.