Solutions to Four Investment Puzzles
While some investment ideas seem to conflict, a deeper understanding can resolve many of these puzzles
A version of this article appeared in the February 2020 issue of Morningstar ETFInvestor. Download a complimentary copy of Morningstar ETFInvestor by visiting the website.
There are many apparent contradictions in investing. For example, the market quickly responds to news and incorporates public information into prices. This makes it difficult to beat. Yet, simply buying recent winners appears to succeed where diligent fundamental research often fails.