Employment Opportunities


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.

Recency Bias Can Derail You

Larry Swedroe tackles performance, international equity valuations and the perils of recency bias. For the 10-year period 2008 through 2017, a very wide dispersion in returns has existed in markets. As the following table shows, U.S. stocks far outperformed international stocks, and growth stocks outperformed value stocks. Given these results, it’s no surprise I have …Read More.

Factor Performance Across Business Cycles

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.

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.

Expect Volatility

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.

Has the Size Premium Disappeared?

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.