FYI: Two years ago, an Arizona State University professor made waves with a study showing all the wealth created by U.S. stocks is the result of gains in a weirdly small group of companies. Now he’s back with an update that shows the situation is no cheerier in the rest of the world.
Hendrik Bessembinder, a 62-year-old researcher in financial market design, and his team sifted through about 62,000 stocks traded in more than 40 countries between 1990 and 2018. Their finding: about 60% were such duds they did worse than one-month U.S. Treasury notes. The proportion was even greater than in the initial study, which focused on the U.S.
Regards,
Ted
https://www.fa-mag.com/news/a-stock-picker-s-lament--most-of-the-world-s-companies-are-duds-50595.html?print
