The end of the Japanese miracle

The spectacular rally in Japanese equities appears to be over after many years of strong gains. Following years of underweight positioning, global investors have finally turned their attention to Japanese stocks, spurred by a recent aversion to U.S. equities—just as momentum is beginning to fade.

The end of value investing?

The decline of value investing is not a recent phenomenon but a process that has been unfolding for over three decades. While many pinpoint its loss of effectiveness around 2007, Baruch Lev and Anup Srivastava demonstrate in their study that the strategy has in fact been structurally underperforming since the late 1980s. The key question is therefore: is value investing dead, or merely in a deep hibernation?

The dollar remains king

The US dollar has experienced a spectacular decline in recent months. Investors call it a correction, analysts see a turning point, and pessimists even predict the end of dollar hegemony. But let’s pause for a moment. While the dollar is indeed falling rapidly, it is far from collapsing.

Return is a chosen illusion

At the heart of financial research lies a seemingly simple question: what is the risk-return profile of stocks and corporate bonds? New research based on the Belgian stock market from 1850 to 1913 shows that the answer changes fundamentally when illiquidity is taken into account.