After nearly a decade of outperformance for growth stocks, fueled by low inflation and near-zero interest rates, value stocks staged a comeback in 2022, outperforming by 20%.
Nearly halfway through 2023, growth leads value by more than 15% with the tech-heavy Nasdaq Stock Market up nearly 20%.
Why should investors maintain and possibly increase exposure to value?
Harry M. Markowitz, an economist who launched a revolution in finance, upending traditional thinking about buying stocks and earning the Nobel in economic science in 1990 for his breakthrough, died on Thursday in San Diego. He was 95.
The death, at a hospital, was caused by pneumonia and sepsis, MaryMcDonald, a longtime assistant to Dr. Markowitz, said.
Until Dr. Markowitz came along, the investment world assumed that the best stock-market strategy was simply to choose the shares of a group of companies that were thought to have the best prospects.
But in 1952, he published his dissertation, “Portfolio Selection,” which overturned this common sense approach with what became known as modern portfolio theory, widely referred to as M.P.T.
Dimensional’s Matrix Book is an annual review of global returns that highlight the power of compound investing. It’s a fascinating document: you can look up the compounded growth rate of the S&P 500 for every year going back to 1926.
Buried on page 74 is a chapter on “World Equity Market Capitalization,” listing the market capitalization of most of the world, country by country. No surprise, the U.S. is the global leader in stock market value. The $40 trillion in stock market wealth in the U.S. is almost 60% of the value of all the equities in the world.
Comparing the Speed of U.S. Interest Rate Hikes
After the latest rate hike on May 3rd, U.S. interest rates have reached levels not seen since 2007. The Federal Reserve has been aggressive with its interest rate hikes as it tries to combat sticky inflation. In fact, rates have risen nearly five percentage points (p.p.) in just 14 months.
In this graphic, we compare both the speed and severity of current interest rate hikes to other periods of monetary tightening over the past 35 years.
The recovery key was designed to make Apple IDs safer. Instead, these victims permanently lost family photos and other precious digital possessions.
By Nicole Nguyen and Joanna Stern. April 19, 2023
Greg Frasca has been locked out of his Apple account since October, and he’ll do just about anything to get back in.
He has offered to fly from Florida to Apple’s California headquarters to prove his identity in person, or write a check for $10,000 to reclaim the account. It holds the only copies of eight years of photos of his young daughters.
This is all because the thieves who stole Mr. Frasca’s iPhone 14 Pro at a bar in Chicago wanted to drain cash from his bank account and prevent him from remotely tracking down the stolen phone. They used his passcode to change the 46-year-old’s Apple ID password. They also enabled a hard-to-find Apple security setting known as the “recovery key.” In doing so, they placed an impenetrable lock on his account.
