July 16, 20184Comments

5 Charts That Prove We’re Not in Another Tech Bubble

When you dig past the noise and look at the data, it’s clear that there’s no comparison between today and 1999. Valuations today are stretched, but not in bubble territory.

by Sam McBride

June 18, 20182Comments

Worst Offenders: Expected Return On Plan Assets

This report red flags the firms with the most underfunded pensions and the most aggressive assumptions for returns they expect to earn on the pension assets.

by Sam McBride

May 9, 20181Comments

Can the Market Grow Into its Valuation?

The good news is that the market’s valuation remains well below its pre-2008 levels. Barring any major negative news (e.g. an oil crisis), we expect to see a relatively flat market for the rest of 2018 as company fundamentals catch up to the gains of last year.

by Sam McBride

April 4, 20182Comments

ISS Buying EVA Dimensions Signals More Focus on Fundamental Research

Sophisticated investors want metrics that go deeper than reported earnings so they can get a truer picture of cash flows and hold companies accountable for capital allocation.

by Sam McBride

February 8, 20180Comments

Tax Reform Losers: Companies with Deferred Tax Assets

Most public companies should benefit from the new tax law but some of the biggest losers will be companies with large deferred tax assets (DTAs).

by Sam McBride

January 31, 20180Comments

Tax Reform Winners: Companies with Deferred Tax Liabilities

Most public companies should benefit from the new tax law and some of the biggest winners will be companies with large deferred tax liabilities (DTLs).

by Sam McBride

January 11, 20182Comments

Only One Sector Has Experienced A True Earnings Recovery

Accounting earnings may have rebounded from 2015 lows, but economic earnings—which reverse accounting distortions and account for the weighted average cost of capital (WACC)—remain in a persistent downturn.

by Sam McBride

November 21, 20170Comments

Follow up to Morningstar: Questions Remain

We appreciate Morningstar (MORN) taking the time to answer our article. Rather than go point by point through Morningstar’s rebuttal, we just want to follow up with a few unanswered questions.

by Sam McBride

November 2, 20170Comments

Morningstar’s Dominance: The Good, Bad and the Ugly

Investors and advisors deserve other, independent sources of research that go beyond Morningstar’s backward-looking methodology.

by Sam McBride

October 5, 20171Comments

Big Banks Will Win the Fintech Revolution

Large incumbent financial firms will continue to control the bulk of the value in the industry, but the structure of the value chain and the way these firms compete will change drastically.

by Sam McBride

September 7, 20170Comments

The Earnings Recovery Remains an Illusion

Our analysis of the latest 10-K and 10-Q filings for the S&P 500 shows that the GAAP earnings growth in the market has not translated to an increase in economic earnings.

by Sam McBride

July 17, 20170Comments

Why Robo-Analysts, Not Robo-Advisors, Will Transform Investing

Robo-advisors and Robo-Analysts are both important to enabling wealth management firms to cut costs without sacrificing quality of advice, but the importance of a Robo-Analyst to enhance the quality of investment advice shouldn’t be underestimated.

by David Trainer, Founder & CEO

July 13, 20170Comments

Hidden Trigger For Another (Flash) Crash: Passive Investing

When the investment process makes no effort to differentiate winners from losers, there is no diligence, no intelligent capital allocation, and, eventually, no efficient market.

by Kyle Guske II, Senior Investment Analyst, MBA

June 27, 20170Comments

Value Investing Is Not Dead, But It Is Harder

We think today’s market is the best in many years for value investors, the real value investors, that is. The real value investors analyze footnotes and balance sheets in addition to income statements.

by Sam McBride

June 14, 20170Comments

The Fed Can’t Wish Inflation Into Existence

Even with inflation running below target, the Fed chose to raise interest rates again. The Fed’s influence is overstated, but it’s still troubling that major policymakers are acting on such an outdated view of the economy.

by Sam McBride

May 17, 20170Comments

Crossing the Chasm 2.0: Rise of the Robo-Analyst

In the same way online trading disrupted the distribution of investment advice, big-data analytics and machine learning will disrupt how financial advice and the research behind it is created.

by Sam McBride

May 4, 20172Comments

The Earnings Recovery Is A Sham

Our analysis of the latest 10-K filings for the 2,600 largest and most actively-traded companies shows that the much-hyped end to the earnings recession is an accounting illusion.

by Sam McBride

April 3, 20170Comments

Diligence Will Matter More Than Ever In 2017

Uncertainty defined 2016. In the midst of all the uncertainty, investors grew more and more aware of the need for real diligence. Market conditions, changing investor behavior, and new technologies all come together to make diligent research matter more than ever.

by Sam McBride

March 15, 20170Comments

Fed Watching Can Be A Costly Distraction

Investors agonizing over the Fed should focus their efforts elsewhere. Instead of guessing where interest rates will go, read some of the thousands of annual 10-K reports that have come out in the past month.

by Sam McBride

December 16, 20160Comments

2016 In Review, Looking Ahead to Next Year

As 2016 comes to an end, we’d like to highlight some of New Constructs’ many accomplishments for this year. We’ve helped our partners and clients avoid stock blow-ups, find long ideas that soar and leverage Model Portfolios that outperform across the board.

by Kyle Guske II, Senior Investment Analyst, MBA

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