Hello Ibrahim,

Thank you for your thoughtful comments. To your point about the correlation of earnings to future stock returns, here is an excellent piece written by Vanguard that was a test of many of the common predictors of future earnings that I think is pretty robust: https://personal.vanguard.com/pdf/s338.pdf

Also, I have to declare that I am an unflinching advocate of active management. However, I do believe the active management community needs to engage in some introspection to improve its offerings. I also believe that the passive community and its advocates use some spurious measures of their own. But more on that another time.

Yours, in service,

Jason