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Passing Shots

The Fifth Set Blog

Topics: Efficient Market Hypothesis, Long-term investing, Portfolio Management, Risk Premium

Why There is Always the Potential for a Bear Market (and Why That’s a Good Thing)

A recent WSJ article explains why bear markets can occur at any time. The article emphasizes a common point made by FSIA with its clients, that the higher expected return from equities is compensation for the additional risk of holding stocks. It is exactly because  …read more »

The Great Divide over Market Efficiency

In a recent Institutional Investor article, authors Clifford Asness and John Liew, offer an interesting and entertaining look at the evidence for and against market efficiency.  Their article takes turns on both side of the debate by highlighting the strengths and weaknesses of work produced  …read more »

The “Problem” with Emerging Market Equities

Much has been made recently of the weak performance of Emerging Market (EM) equities both on an absolute and a relative basis.  As we can see in the following chart, through February 2, 2014, Emerging Market equities (as measured by the iShares MSCI Emerging Market  …read more »