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How justified are the record P/E spreads in equity markets?

Average Price/Earnings multiples conceal an extreme level of valuation dispersion in Western equity markets. This is increasingly concerning.

8 Minute Read
Fabian Scheler

December 7, 2021

Are value stocks a good inflation hedge?

Value stocks are often assumed to have a shorter duration than growth stocks and are therefore expected to outperform during times of rising interest rates. In practice, this is all but clear.

6 Minute Read
Fabian Scheler

November 30, 2021

How many stocks sufficiently diversify a portfolio?

Many investors learn that the full benefits of diversification can be harvested with 20-30 stocks. However, it has been shown that this idea is based on a misunderstanding.

7 Minutes Read
Fabian Scheler

November 18, 2021

An efficient frontier for FX hedging

Many investors either neglect FX risk or tackle it in an overly simplistic way. This publication therefore elaborates on different heuristics and introduces a mean-variance based approach.

5 Minute Read
Fabian Scheler

August 30, 2021

How effective are protective puts?

Systematic protective put strategies don't just suffer from the cost of the insurance premium but also provide pretty poor protection once drawdowns are not perfectly aligned with the option's lifecycle.

5 Minute Read
Fabian Scheler

August 9, 2021