A recent study explores how Fama-French factors perform across various stages of recession and recovery. Arnav Sheth and Tee Lim contribute to the literature on the performance of factor-based investment strategies through their December 2017 study, “Fama-French Factors and Business Cycles.” In it, they examined the behavior of six Fama-French factors—market beta (MKT), size (SMB), …Read More.
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.
Dips in the stock market over the last few days jolted a lot of investors. But, as Buckingham’s Sue Stevens explains, volatility is normal, and the best course of action right now is simply to do nothing. The past two years have seen an unusually low level of volatility in the stock market. That can …Read More.
There are some logical explanations for why the size premium may have shrunk, but, as Larry Swedroe shows, there are also simple, intuitive and risk-based explanations for why it should persist. Financial research has uncovered many relationships between investment factors and security returns. As director of research for Buckingham Strategic Wealth and The BAM Alliance, …Read More.
The latest SPIVA scorecard is out, and Larry Swedroe unpacks results that show persistence in performance beyond the randomly expected remains out of reach for active managers. Since 2002, S&P Dow Jones Indices has published its biannual Indices Versus Active (SPIVA) reports, which compare the performance of actively managed equity funds to their appropriate index benchmarks. …Read More.
On the latest MoneyZen Podcast, Manisha Thakor tackles the ins and outs of angel investing with Angela Lee, founder of 37 Angels and Chief Innovation Officer and Associate Dean at Columbia Business School. By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply …Read More.
Larry Swedroe on why, before some dire forecast causes you to panic over risk in your bond holdings, it’s well worth recalling that the collective wisdom of the market is a very tough competitor. As director of research for Buckingham Strategic Wealth and The BAM Alliance, one of the most-asked questions I’ve been getting lately …Read More.
Don’t rely on some commercial to ensure your financial advisor is acting in your best interest. “I’m calling it — this is an Apple commercial,” said my 14-year-old son, about halfway into the visually stunning emotional appeal for educational experimentation that appeared on our TV while we were otherwise dedicating ourselves to one of the …Read More.
Larry Swedroe explains why new research into the volatility of equity risk premiums shows that patience and factor diversification are crucial. “Success in investing doesn’t correlate with IQ. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people in trouble investing.” — Warren Buffett In my more …Read More.
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.