We constantly learn more about investing, build disciplined strategies to capture the best of what we've learned, and share our broad findings with other curious investors.
In this piece, Jesse Livermore* explores the stock market implications of fiscal policy. Focusing specifically on the COVID-19 pandemic, he shows how the presence of fiscal policy as a reliable source of economic stimulus can turn stock markets "upside-down", affecting profits, inflation, and valuation in ways that transform good news into bad news and bad news into good news.
In 2019, we completed more research than in any prior year, built and launched Canvas, and shared 13 papers and over 50 podcasts. This letter is intened to share where markets stand at year end, and discuss what we built and learned at OSAM during 2019.
Our research suggests that a historic opportunity may be forming in small cap companies, particularly small cap value. This article looks at the performance of small cap stocks in bear markets, and the record earnings yield spreads between small cap value and large cap growth.