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.

+ Zoom

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

What are advisers clamoring for in the tech space?

Advisers have made their needs known, and fintech firms are listening. Hear from the experts at Fuse what they're doing to help advisers build and scale practices.

Video Spotlight

Are Your Clients Prepared For Market Downturns?

Sponsored by Prudential

Recommended Video

Path to growth

Latest news & opinion

10 things clients say that make you cringe

Sometimes clients say stupid things. Here are 10 classics.

HighTower faces pressure to let investors cash out

After an IPO planned for last year didn't happen, the company could opt to satisfy its backers with a sale.

Envestnet to buy FolioDynamix

The deal, which is expected to close in the first quarter of 2018, will bring the total assets Envestnet works with to almost $2 trillion.

Jerry Schlichter's fee lawsuits have left an indelible mark on the 401(k) industry

After a decade of litigation, fees are lower and retirement plans are more transparent. But have the lawsuits gone too far?

10 best financial adviser jokes

How many financial advisers does it take to screw in a lightbulb?

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print