Professor Siegel made a call for a 10% correction in the markets roughly three weeks ago, which was followed by over a 10% selloff in the S&P 500 Index.
According to S&P Dow Jones, more than 82% of large-cap active mangers underperformed the S&P 500 Index over a 10-year period. And although it is commonly believed that active management works best in inefficient environments, such as small caps, active managers actually underperformed here too. We explain why some of WisdomTree’s best performance against active and passive peers alike has been in the small-cap asset class.
In the current low-interest-rate environment, focusing on dividends has been popular. But currency movements could wipe out any benefit of a dividend-focused approach in developed international equities.
Last Friday, Professor Jeremy Siegel and I spoke with St. Louis Federal Reserve (Fed) President James Bullard about his economic outlook, September liftoff and, quite critically, how politicians should be more focused on the Fed’s exit policy.
Japanese equities dropped 5.5% last week, for their sharpest weekly loss in over 15 months. The market is still up 11.8% year-to-date, and in our view, last week marks a healthy—and overdue—correction. The multi-year bull market for Japanese risk assets—equities and real estate—remains intact.