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Educated Investor

Maintaining a Globally Diversified Portfolio

Given their long underperformance relative to U.S. stocks, some investors may be questioning whether it makes sense to own international equities. Jared Kizer looks at five reasons why you should remain committed to a globally diversified approach. Since the financial crisis of 2008, U.S. equities have earned substantially higher returns than international equities. Ken French’s …Read More.

Financial Distress and Stock Returns

Larry Swedroe looks at research into the anomaly that exists in the relationship between default risk and equity returns. The most basic of asset pricing theories is that riskier assets should command higher expected returns. Clearly, financial distress is a risk characteristic, but it’s one that presents a dilemma, as there has not been a …Read More.

Putting Market Volatility In Perspective

It’s always helpful to put volatility in perspective, especially after last week’s market swings. It’s always helpful to put volatility in perspective, especially after last week’s market swings. The BAM ALLIANCE’s Chief Investment Officer Jared Kizer and Director of Investment Strategy Kevin Grogan offer an insightful reminder about the importance of keeping a long-term view …Read More.

Don’t Write Off Value

Larry Swedroe takes a look at the data and builds his case for why investors should continue to expect a value premium going forward. Recency bias—the tendency to give too much weight to recent experience and ignore long-term historical evidence—underlies many of the mistakes commonly made by investors. It’s particularly dangerous because it causes investors …Read More.

Demystifying Planning & Paying for College: A MoneyZen Conversation with Wealth Advisor David Ressner

Manisha Thakor and David Ressner discuss saving for college, financial aid, calculating costs and even how to identify the right (priced) college. Demystify planning for college costs: Manisha Thakor and David Ressner discuss saving for college, financial aid, calculating costs and even how to identify the right (priced) college. By clicking on any of the …Read More.

When Manager Skill Is Really Factor Exposure

Larry Swedroe unpacks a recent study suggesting that, when selecting active mutual funds, investors confuse loading on common factors with managerial skill. Extensive and readily available data show that the persistence of active managers’ outperformance is well below what we would expect from pure chance (randomness). Making matters worse is that the equity managers who …Read More.

The Benefits of Managed Volatility Strategies

Larry Swedroe tackles research into how managing volatility shapes outcomes and utility. There’s a large body of research demonstrating that, while past returns do not predict future returns, past volatility largely predicts future near-term volatility. For example, since 1926, the correlation of returns between adjacent 60-trading-day periods is essentially zero. In contrast, the correlation rises …Read More.