MoneyZen Podcast: Discovering Our Authentic Careers — An Interview With Gur Tsabar
Manisha Thakor talks about joyful work and finances with Gur Tsabar.
Resources
ETFs A Double-Edged Sword
Larry Swedroe surveys the benefits and drawbacks of the rise of ETFs.
MoneyZen Podcast: Retirement Readiness
Retirement readiness in America: Manisha Thakor and Catherine Collinson of TCRStudies unpack the risks and trends.
Another Angle On Factor Diversification
Last week, we examined the data (from my new book, “Your Complete Guide to Factor-Based Investing,” which I co-authored with Andrew Berkin) on the odds that the premiums associated with some common investment factors would produce a negative return over various horizons. We then examined how constructing a diversified factor portfolio might impact those odds…
Election Revives Old Myths
The results of the U.S. presidential election not only surprised almost all the gurus who were saying that a Hillary Clinton victory was a sure thing, but also those forecasting that, if by some miracle Donald Trump won, a stock market crash was bound to occur. Prior to the election, I had received many inquiries…
The Perils Of Bargain Hunting
As I have been discussing in a series of articles (which you can find here, here and here), we now have a substantial body of evidence demonstrating that individual investors possess a preference for low-priced equities. This is anomalous behavior, because the level of a company’s stock price is arbitrary—firms can manipulate it by adjusting…
How Risk and Uncertainty Affect Stock Returns
Asset pricing models imply that equity portfolios’ time-varying exposure to the market risk and uncertainty factors carries with it positive risk premiums. Turan Bali and Hao Zhou contribute to the body of literature on this topic through the study “Risk, Uncertainty, and Expected Returns,” which appeared in the June 2016 issue of the Journal of Financial and…
Here’s A Better Measure Of Value
Eugene Fama and Kenneth French’s seminal 1992 paper, “The Cross-Section of Expected Stock Returns,” resulted in the development of the Fama-French three-factor model. This model added the size and value factors to the market beta factor. One of the benefits of adding the value factor (the tendency for relatively cheap assets to outperform relatively expensive…
“Your Compete Guide to Factor-Based Investing” : A Q&A With Larry Swedroe
Larry Swedroe discusses his new book, “Your Complete Guide To Factor-Based Investing,” while taking on smart beta, the investment factor “zoo” and how to think differently about diversification in a recent interview with ETF.com’s Drew Voros. Find it on ETF.com By clicking on any of the links above, you acknowledge that they are solely for…
The Volatility of Active Management
S&P Dow Jones Indices has long provided a great service to investors with its semi-annual S&P Indices Versus Active (SPIVA) scorecards. The evidence offered in these reports has shown time and again that, regardless of the asset class, the vast majority of active managers persistently fail to outperform their benchmarks, and that there is little to…
Diversification For The Long Term
The table below, taken from the newly released book I co-authored with Andrew Berkin, “Your Complete Guide to Factor-Based Investing,” shows the annual premium and Sharpe ratio for the equity factors of market beta, size, value, momentum, profitability and quality. It also shows the odds that each premium will produce a negative return over various…
New Book Shines Light On Momentum
Momentum is the tendency for assets that have performed well (poorly) in the recent past to continue to perform well (poorly) in the future, at least for a short period of time. This is a big problem for the efficient markets hypothesis, as there’s no coherent risk-based explanation for momentum’s performance. Not only has there…
Bottom-Up Construction Works Best With Multiple Investment Factors
CAPM was the first formal asset pricing model. Market beta was its sole factor. With the 1992 publication of their paper, “The Cross-Section of Expected Stock Returns,” Eugene Fama and Kenneth French introduced a new-and-improved three-factor model, adding size and value to market beta as factors that not only provided premiums, but helped further explain…
Factor-Based Investing: A Q&A With Larry Swedroe
Larry Swedroe discusses his new book, “Your Complete Guide To Factor-Based Investing,” as well as the theory behind factor strategies and how investors can achieve their risk and return objectives through them, in a recent Q&A. Find it on MutualFunds.com By clicking on any of the links above, you acknowledge that they are solely for…
The Guide to Happy Giving
The giving season is underway, with the holidays and year-end bearing down on us. So how can we transform one of the more stressful, and sometimes guilt-ridden, elements of the season into something more life-giving? Whether you’re giving to a family member, a friend or a cause, please consider the following four directives as a…
