Valuewalk.com
0
All posts from Valuewalk.com
Valuewalk.com in Valuewalk.com,

Daily Academic Alpha: Warren Buffett Market Predictions

Daily Academic Alpha: Warren Buffett Market Predictions By Wesley R. Gray, Ph.D., Alpha Architect, Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors.

Last week we had a fairly long post on a valuation based asset allocation strategy that might actually work. This post followed a couple of other research projects on the issue, which showed limited evidence for simple valuation-based timing strategies.

Now there is a new paper on Warren Buffett’s favorite timing mechanism, Market Cap/ GNP (or GDP). We’ve discussed this metric in 2013, which suggested one get out of the market, and the out-of-sample results were horrific–the market has been on a tear!

Below is a link to the new paper and abstract (h.t. CXO...


More