Market Neutral

Market Neutralblog

Investment ideas for the informed adviser.

Chart of the day: The decline of the long-term investor

Nov 27, 2012 @ 9:44 am

By

In the latest issue of Glenmede's Monthly Insights commentary, Jason Pride, director of investment strategy for the firm, examines John Maynard Keynes' likening of professional investing to a beauty contest, in which investors are not "choosing those which, to the best of one's judgment, are really the prettiest, nor even those which average opinion genuinely thinks prettiest." Instead, Keynes wrote, "We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be."

Using this assessment, Pride argues that "markets seem more removed than usual from fundamentals." He notes the way markets tend to rally when a monthly employment report is positive and go in the opposite direction when the report is negative. He also presents a chart below that "traces a clear, secular decline in the average holding period of stocks."

To read the Pride's full commentary, click here.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Why some retirement plan advisers think Fidelity is invading their turf

InvestmentNews editor Frederick P. Gabriel Jr. and reporter Greg Iacurci talk about this week's cover story that looks at whether Fidelity Investments is stepping on the toes of retirement plan advisers.

Latest news & opinion

Broker protocol: Indecision over recruiting agreement is rampant

Ruckus over recruiting agreement has even wirehouse lifers wondering if it's time

Cetera reportedly exploring $1.5 billion sale

The company confirmed it's talking to investment bankers to 'explore how to best optimize [its] capital structure at lower costs.'

SEC Chairman Jay Clayton outlines goals for a new fiduciary standard

Rule should provide clarity on role of adviser, enhanced investor protection and regulatory coordination.

Advisers bemoan LPL's technology platform change

Those in a private LinkedIn chat room were sounding off about fears the independent broker-dealer will require a move to ClientWorks before it is fully ready.

Speculation mounts on whether others will follow UBS' latest move to prevent brokers from leaving

UBS brokers must sign a 12-month non-solicit agreement if they want their 2017 bonuses.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print