If fixed income is the bedrock of a client’s portfolio, then it better be solid. Investment Strategy Advisor Brian Haywood gives CNBC a look at how credit quality, duration and laddering fit into our evidence-based approach for building bond portfolios. “We think of fixed income as the bedrock of a client’s portfolio. It is there …Read More.
A recent study explores how a lack of financial literacy can cost investors returns. It’s a great tragedy that despite its obvious importance to everyone, our educational system almost totally ignores the field of finance and investments. This is true unless you go to an undergraduate business school or pursue an MBA in finance. Eighteenth-century …Read More.
Larry Swedroe unpacks some recent research from our own Jared Kizer that shows the risk already found in a portfolio of stocks and government bonds can make owning corporate bonds redundant for many investors. A number of articles were written at the end of 2008 noting that, for the prior 40-year period, stocks had barely …Read More.
When it comes to markets, there are no clear crystal balls. Like in poker, the best you can do is put the odds in your favor and then invest (or bet) accordingly. Larry Swedroe on what poker players can teach investors about evaluating decisions. As expert poker player Annie Duke explains in her book, “Thinking …Read More.
Tim Maurer lays out the ways you can sidestep interruptions and productivity detours by focusing your time and energy on doing the work you do best when you’re at your best. Being busy doesn’t necessarily mean you’re getting work done — or doing it well. Tim Maurer lays out the ways you can sidestep interruptions …Read More.
BAM ALLIANCE member Michael Evans on factors to consider when weighing certain financial advantages to holding a mortgage, and whether it makes sense for you. I believe it’s time to take a fresh look at a timeless question: Is it better to own your home outright or maintain a mortgage? Given all the factors involved, …Read More.
Failing to properly plan for the costs associated with aging can have dire consequences for the retirement you envision. Larry Swedroe unpacks a resource to help investors navigate the many financial aspects of elder and long-term care. In planning for retirement, most people—and their advisors—consider issues such as: How much savings will be needed to …Read More.
Does the current empirical evidence still suggest there’s a significant benefit to including emerging markets stocks in a globally diversified portfolio? Larry Swedroe makes his case for the prudent investment strategy. Thirty years ago, emerging markets made up only about 1% of world equity market capitalization, and just 18% of global GDP. As such, the …Read More.
Larry Swedroe on a study showing why performance chasing rarely succeeds. There is a considerable body of evidence demonstrating that the post-hire performance of active managers tends to be disappointing relative to their pre-hire performance. Specifically, managers’ performance tends to regress toward zero after adjusting for expenses, risk, exposure to common factors and survivorship bias. …Read More.
Larry Swedroe looks at recent research into payout policies and the long-run drivers of expected equity returns. In their famous 1961 paper, “Dividend Policy, Growth, and the Valuation of Shares,” Merton Miller and Franco Modigliani theorized that investors should be indifferent about whether they receive distributions via dividends or buybacks, as well as how they …Read More.