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.
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