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.
Tim Maurer in Forbes on how advisors (or anyone else, for that matter) can better receive, and respond to, sad news. …Read More.
Tim Maurer in Forbes on how advisors (or anyone else, for that matter) can better receive, and respond to, sad news. I recently received a text message from my mother that I’ll never forget, letting me know a long-time family friend was checking her mail when a tree branch fell and killed her, instantly. Her legacy is …Read More.
Tim Maurer shares 5 things to do to make sure your life insurance planning is on track. So much of the maintenance of our personal finances falls into the category of “boring, but important.” But when it comes to life insurance, our subconscious resistance to the topic is further compounded because, unlike retirement or career …Read More.
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.
Can we better save for retirement by acting as if that “someday” is today? While on vacation recently in the Abaco Islands, on the outer rim of the Bahamas, I found myself on an important mission: taking the golf cart to the local market to restock our dwindling supply of the necessary ingredients for piña …Read More.
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.