AMC and GameStop are priced squarely in the large cap growth space, and yet represented nearly 1.5% of the Russell 2000 Value Index as of May 31. On the scale of size discrepancies, this is akin to 7-foot-6-inch former NBA star Yao Ming visiting a kindergarten class. However, investors in strategies tracking the Russell 2000 Value Index may be surprised to learn the list of holdings inconsistent with the index’s definition goes much deeper, an outcome of the style drift
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Out of Bounds: Style Drift in the Russell 2000 Value Index
‘Everything Screams Inflation.’ How to Interpret the Headlines
KEY TAKEAWAYS After last year’s economic shocks, we shouldn’t be surprised to see prices rebounding. But the potential for inflation is one among many factors investors take into account when agreeing on a price at which to trade. A look at headlines from the past 50 years shows the difficulty of timing markets around inflation expectations. Investors may be better served sticking to a long-term plan. How quickly things change. Two years ago, the New York Times reported, “Federal Reserve
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