What we’re reading (4/23)
“Individual Investors Are Still Hungry for Stocks—While Shunning Risk” (Wall Street Journal). “Individual investors scooped up shares of single stocks and exchange-traded funds at a near-record clip in the first quarter. They appear to have learned some lessons in risk taking as well. Individuals bought a net $77.7 billion in equities and ETFs on U.S. exchanges in the first three months of the year, according to Vanda Research data, which excludes contributions to 401(k)s and other retirement accounts. That sum trails only the first quarters of 2021 and 2022, when they bought about $80 billion.”
“Perspective: Housing Prices Take Some Buyers Out Of The Market” (Washington Post). “There has been much debate over whether the economy will or will not suffer a recession this year. There is no debate that housing is in recession. Home sales, the construction of single family homes, and house prices are falling.”
“Fed Officials On Track To Hike Rates And Signal Potential Pause” (Bloomberg). “Federal Reserve officials are on track to raise interest rates a quarter percentage point next month and signal a potential pause from the steepest hiking campaign in decades.”
“Here’s a Better Way To Identify Quality Stocks” (Institutional Investor). “According to the research, the annual return on a portfolio of quality stocks can be enhanced by an average of .60 percent when investors include intangible assets in their definition of quality. Intangible assets include investments in research and development, software expenses, and costs associated with branding and human capital.”
“The 60/40 Portfolio Is Back! *After Not Going Away” (The Big Picture). “One outlier year every 4 decades or so makes for a pretty reliable investment strategy. The academic evidence that this sort of investing outperforms all others over a long enough timeline is overwhelming.”
