West Loop Financial LLCIs The Stock Market ‘Overgrazed’? – West Loop Financial LLC https://www.westloopfinancial.com Evolutionize Site Wed, 19 Aug 2020 20:50:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.22 Is The Stock Market ‘Overgrazed’? https://www.westloopfinancial.com/2014/05/27/is-the-stock-market-overgrazed-2/ https://www.westloopfinancial.com/2014/05/27/is-the-stock-market-overgrazed-2/#respond Tue, 27 May 2014 15:47:50 +0000 http://evolvemypractice.com/?p=966 There’s an interesting new paper by Claude Erb, “Has the Stock Market Been Overgrazed?” He begins with noting that over time (since the 1920s), the beta, size and value premiums have all declined. He then asks: “What if too many investors are demanding too much from a possibly limited supply of opportunities?” Said another way,...

The post Is The Stock Market ‘Overgrazed’? appeared first on West Loop Financial LLC.

]]> There’s an interesting new paper by Claude Erb, “Has the Stock Market Been Overgrazed?” He begins with noting that over time (since the 1920s), the beta, size and value premiums have all declined. He then asks: “What if too many investors are demanding too much from a possibly limited supply of opportunities?” Said another way, are the “trades” too crowded? If that’s the case, investors need to “find untrammeled parts of the investment ‘commons’ by developing new investment strategies seeking above average returns.” As Erb goes on to note: “A challenge arises though if these new strategies seeking above average returns end up recycling the underlying overgrazed building blocks of equity returns.”

Read the rest of the article on Seeking Alpha.

The post Is The Stock Market ‘Overgrazed’? appeared first on West Loop Financial LLC.

]]> https://www.westloopfinancial.com/2014/05/27/is-the-stock-market-overgrazed-2/feed/ 0