Business Articles, Index Investing, Investing, Value Investing

Index Investing is More Art Than Science

I am about to share some Value Investing information that will make your jaw drop. If your anything like myself and the gang of us on Twitter who are Value Investors? You are a Junkie for information so you can put your research to work for the purpose of outperforming your latest Investment Portfolio’s compounding unrealized gains. Today’s Post is special for Investment Professionals.

You know that S&P 500 Growth Index your about to invest in? It’s likely there is a better index option with higher returns. FACT! By the way THIS IS NOT A SALES PITCH. NOR INVESTMENT ADVICE.

Hear me out! Thank you. I would like to introduce a well known Investment Advisor who has focused his career on Institutional Investing in the North East, and for the last 10 years has lived and practiced in Tucson Arizona, I listen to his fantastic Podcast while I work at night driving around town listening to his Podcast, “Money for the rest of us“.

Mr. Stein has a gift explaining complex and sophisticated Financial Products, and Investing Topics that make it very easy to compute. Furthermore one of the Episodes he recorded recently was fundamentally explosive for me as a fellow Investor. He went on to explain that not all Index Investing is created equal. Now I do see this will begin to shift opinions with what I am about to share. But before I begin addressing the Questions you may have about this Morally Hazardous Claim. First I have to share why we came to this conclusion.

Data Mining Index Markets on to a Software Application

Mr. Stein and his small Investment Team and a few Software Developers and Architects of Digital Computer Programs recently released a secret project that details charts and tons of Data of Index’s across the globe in different Markets. They measured different ETF’s, Value Index’s, Growth Index’s, Growth ETF’s, ETN’s, Japan Index’s, UK Index’s, US S&P Index’s and tons more.

What did they find?

They found that not all Index Investing is the same. A very valid argument for Investment Advisers and Money Managers can be made that with this new DATA? The old practice of Value Investing is very much alive and out performing it’s counter part of Growth Funds. This post is general findings I heard on the podcast. However I suspect if you listen to the exact episode I listened to you will find it fascinating all the data and inflection points to that Index Investing is a Art not a Science. The following points of interest and listed topics will keep you on topic as you listen to Mr. J. David Stein share some incredible Data about “how to make your Index Research interesting? And how you should begin looking at data with his latest Software Application for Investing. This is what you will learn?

Index Providers divide the stock universe into large and small, growth and value.

The Difference Between the price to earnings ratio and earnings yield and which is better?

How earnings volatility can impact annual earnings growth and what to use to estimate future earnings?

How value stocks often grow earnings faster than growth stocks

How value has outperformed growth in the last three years?

Click the Photo below for Access to the Episode about Asset Camp and the Points and Topics shared above.

If your like me and would like to see these Data and Research Points? I would recommend sign up for the Data Suite Software for Investment Advisors and Sophisticated Professional Investors Asset Camp

Listen to the Episode with J. David Stein

https://moneyfortherestofus.com/443-surprising-stock-index-insights/

Thank you for reading, I am very happy to share this. You will learn a few amazing topics that make Value Investing hard to beat as a Investor.

Godspeed
JS

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