JEast Posted February 25, 2015 Share Posted February 25, 2015 Nice article on the distortions of ZIRP with respect to value investors. the Fed keeping interest rates near zero for the past six years has had the “unintended consequence” of boosting the stocks of companies with heavy debt and little or no earnings. Typically after a recession, such companies lose out to firms that generate more cash and have better balance sheets. This time, no “Darwinian” shakeout happened and low-quality stocks ruled http://www.bloomberg.com/news/articles/2015-02-24/wall-street-s-best-stock-pickers-pin-rut-on-warped-market Neuberger Berman’s paper “Is There Hope for Active Managers?” http://pa-pers.org/newweb/documents/Fall2013-NeubergerBerman-FullArticle.pdf Cheers JEast Link to comment Share on other sites More sharing options...
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