In this article, by Ramon P. DeGennaro1, AIER visiting scholar, we address the notion of stakeholder value. The concept has gained traction, and investors should be alert to its potential implications regarding the longstanding notion of shareholder value as well as future economic growth. According to R. Edward Freeman, “A stakeholder in an organization is […]

Consumer prices increased notably in April. It is not yet apparent whether this is a temporary phenomenon or the beginning of a long-term trend induced by an extraordinary fiscal and monetary expansion. But investors appear increasingly uncertain regarding future price inflation; stock markets have been turbulent since the release of this surprising inflation data and

The broad U.S. stock market had another strong quarter, returning 6.3 percent, as robust corporate earnings growth eclipsed concerns over rising interest rates. Its trailing 12-month return was 62.3 percent, marking the best 12-month return in more than 20 years. This surge retraces a period that began near the market bottom, following its epic collapse

Readers who have adopted “tilts” toward small cap and value equities in their portfolios are probably aware that these stocks have outperformed large growth stocks in recent months. We cannot predict whether this trend will continue, but long-term investors can be confident in the rationale for these tilts. Not all stocks have the same expected

Recent news has focused on social media trading platforms aimed at driving up prices on certain “meme stocks”, most notably the contrived “short squeeze” of Gamestop (GME). These activities seem to have no basis in traditional security analysis; indeed the recent volatility in GME appears completely detached from a rational assessment of risk and return.

With 2020 behind us, we can look back upon one of the most tumultuous calendar years in capital market history. The pandemic and subsequent shutdown of economic activity caused disruption on a global scale. Investors who did not panic were amply rewarded as the market finished the full year with a gain of nearly 21

What a year! It’s “one for the books” – 2020 served up a host of trials and tribulations, including the impeachmentand acquittal of the President, a deadly global pandemic, mandatory shutdowns and a comatose global economy, riotsthat destroyed large swaths of U.S. cities, a return of communist expansion in Hong Kong, a projected $3.3 trillion

Successful investing is unlike many other endeavors. Because investment outcomes can be random and unpredictable, learning moreand trying harder don’t necessarily lead to better results. Contrast that with activities in which working harder statistically leads to better results. Some people like running. The average runner might run a few times a week in the summer,

As of the latest observation, the yield on “risk-free” three month T-Bills was just 0.11 percent. Rates are low across the yield curve, with the recent yield on the 10-year Treasury just 0.74 percent. For comparison, even during the extremely low rates of 2012, the yield on the 10-year bottomed around 1.5 percent. During the

As in previous election years, investors are inundated with headlines and opinions regarding potential electoral outcomes and resulting implications for capital markets. This year, uncertainty regarding the potential health and economic impacts of a global pandemic has amplified the noise. Meanwhile, the ascent of social media has fanned the flames by all too often animating