Venerated Voices™ Q1 2024 Rankings

They discuss the challenges this over-concentration poses for active managers, who have underperformed the index especially when the largest stocks dominate returns. They propose equity extension strategies as a solution for active managers to better align their portfolios with their investment views, especially in a concentrated market environment. Despite the difficulties active managers face, the authors believe history suggests that a shift in market dynamics may favor active management in the future if the index becomes less concentrated:

“If the U.S. equity market becomes less concentrated – our bet for the next decade – skilled active managers are poised to have a decade for the books.”

The Great Paradox of the U.S. Market! took second place, written by Jeremy Grantham of GMO and published on March 11. He points out the contradiction between the seemingly perfect conditions reflected in high market indicators and the underlying risks posed by geopolitical instability and long-term economic challenges. Grantham outlines concerns about the overvaluation of the U.S. stock market, cautioning investors about the current high Shiller P/E ratio and record profit margins. However, he suggests potential investment opportunities in quality stocks, resource equities, climate-related investments, and deep value stocks within the U.S. market. Additionally, Grantham warns of broader economic challenges posed by climate change, resource limitations, and environmental toxicity, urging investors to consider proactive strategies in response to these long-term issues.

“The stark contrast between apparent embedded enthusiasm and these likely problems seems extreme, illogical, and dangerous.”

In third place was Universal Capitulation and No Margin of Safety by John Hussman of Hussman Funds, published on March 22. He explains the current state of the stock market and discusses the importance of aligning investment outlook with observable market conditions. Despite the temptation to speculate how “this time is different,” Hussman advises against it, pointing out the risks associated with overvalued markets and unfavorable market internals. He also challenges common misconceptions about profit margins and mega-cap stocks, warning investors to remain cautious and avoid relying on unsustainable growth and profit margin trends. Ultimately, Hussman stresses the need for disciplined investment strategies that can adapt to changing market conditions without relying on forecasts.

Advisor Perspectives’ website attracts more than 100,000 unique visitors per month, virtually all of them financial advisors serving high- and ultra-high net worth individuals. The company, which is part of TMX VettaFi, publishes economic and market commentaries submitted by fund companies, advisors, and independent research firms. In Q4 2023, over 640 such commentaries were published and made available through a daily newsletter, Research Perspectives, which the company emails to its subscribers.

Venerated Voices™ rankings were determined by the number of unique readers of each commentary, using data provided electronically by the third-party web analytics service Google Analytics. The data was normalized using the average score per month. Any participant is eligible to receive a quarterly award. Each firm and author are assigned a relative score based on unique pageviews, with a score of 100 equal to the average quarterly readership.

Advisor Perspectives was founded in 2007 and is based in Lexington, Massachusetts. In addition to Research Perspectives, it publishes a widely read weekly newsletter, Advisor Perspectives, which contains original articles on the markets, the economy and practice management. In October 2022, it was announced that Advisor Perspectives became a part of VettaFi, and in January 2023, it was announced that VettaFi became part of TMX Group.

Advisor Perspectives will continue providing quarterly updates to its rankings, as well as issuing annual Venerated Voices™ awards.

The Top 10 Venerated Voices™ by Commentary

The Top 25 Venerated Voices™ by Firm

The Top 25 Venerated Voices™ by Author

The Top 25 Venerated Voices™ by Firm – Frequently Posted

The Top 25 Venerated Voices™ by Author – Frequently Posted

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