The low-beta anomaly may be persistent and pervasive across the globe, but, Larry Swedroe writes, research shows its returns are explained well by other now-common factors and its premium is dependent on certain circumstances. …Read More.
Pension plan sponsors engage investment consultants even though the evidence clearly shows their recommendations fail to add value. Why? Larry Swedroe examines research that concludes there’s an agency problem (that is, a conflict of interest) at work. …Read More.
There have been so many factors identified in the academic literature that John Cochrane, in his 2011 presidential address to the American Finance Association, famously described it as a factor “zoo.” With 600 or more having been “discovered,” how can investors determine which factors are suitable for investment? …Read More.
Larry Swedroe on the importance of integrating all risks (not only the investment kind) into an overall financial plan. Larry Swedroe, Director of Research, The BAM ALLIANCE Harry Markowitz received the Nobel Prize in Economic Sciences in 1990 …Read More.
A sound investment plan isn’t the only way to find financial security. Earlier this week, we looked at the importance of incorporating different types of risk—specifically, human capital risk—into an overall financial plan. Today I will focus on mortality …Read More.
Larry Swedroe shows that book-to-market isn’t the only criteria for defining the value factor. Eugene Fama and Kenneth French’s 1992 paper, “The Cross-Section of Expected Stock Returns,” resulted in the development of the Fama–French three-factor model. This model …Read More.
Helping aging parents with their finances. Role reversal: If you have aging parents, they may need help sorting out their finances. Stuart Vick Smith lays out some steps you can take to help them feel in control of …Read More.
Larry Swedroe on how the risk of private equity doesn’t always equal higher returns. The term “private equity” is used to describe various types (e.g., buyout funds and venture capital funds) of privately placed (nonpublicly traded) investments. Even …Read More.
Larry Swedroe reviews the evidence on how political biases can affect your investing. “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it …Read More.
Larry Swedroe on how a systematic approach can help mitigate the problem. The typical hedge fund fee structure includes a management fee, calculated as a fixed percentage of a fund’s net asset value, plus an incentive fee, calculated …Read More.
Manisha Thakor on the importance of building relationships in financial planning. The best financial relationships occur when your wealth advisor is interested not just in investing your money, but in investing in your life. Manisha Thakor on helping …Read More.
Tim Maurer asks 12 thought leaders for techniques to stop the cycle of “busyness.” It’s old news that we’re busy and that we wear our busyness as a badge of honor. But a new study found that Americans, in particular, …Read More.
Larry Swedroe checks the research on socially responsible vs. “vice” investing. Socially responsible investing (SRI) has been referred to as “double-bottom-line” investing. The implication is that investors are seeking not only profitable investments, but investments that meet their …Read More.
Tim Maurer on the irony (or not) of fiduciaries supporting a fiduciary rule. The Trump administration’s move to delay implementation of the Department of Labor’s fiduciary rule has inspired me to delay implementation of my commitment to remain …Read More.
Feedback on investment decisions helps improve investor performance: Larry Swedroe unpacks the research. It’s been well documented that, on average, retail investors are “dumb” money. For example, on average, the stocks they buy go on to underperform, and …Read More.
