Larry Swedroe unpacks an illustration supporting factor diversification for portfolio efficiency. The holy grail of investing is the search for investment strategies that can deliver higher expected returns without increased risk, or the same expected return with reduced risk. In our 2014 book, “Reducing the Risk of Black Swans,” my co-author Kevin Grogan and I …Read More.
In-state or out-of-state municipal bonds? Fixed Income Advisor Steve Wiechel explains how the fixed income desk determines which is best for each individual client. …Read More.
Savvy Ladies Founder Stacy Francis discusses insights about women’s relationship to money before, during and after divorce, as well as the four most common paths to divorce and pitfalls to avoid in the process. Stacy Francis discusses insights from her 2017 white paper, “Unveiling The Unspoken Truth: The Financial Challenges Women Face During And After …Read More.
Larry Swedroe reviews research on a century of evidence on time-series momentum. Similar to some better-known factors, such as size and value, time-series momentum historically has demonstrated above-average excess returns. Also called trend momentum, it is measured by a portfolio long assets that have had recent positive returns, and short assets that have had recent …Read More.
Behavioral economics can and should reframe how we look at our interaction with money, as well as the business of financial advice. I don’t think professor Richard Thaler is going to return my calls anymore. Sure, he was gracious enough to give me an interview after his most recent book, Misbehaving, a surprisingly readable history of the field …Read More.
Tim Maurer tells CNBC it can be so helpful to think about risk from three angles: your willingness, ability and need to take it. Accurately gauging your risk tolerance is a crucial part of the equation when it comes to setting financial goals. That’s why, Tim Maurer tells CNBC, it can be so important to …Read More.
Mutual fund rating systems really only do a great job of “predicting” the past. Larry Swedroe reviews the research. The holy grail for mutual fund investors is the ability to identify in advance which of the very few active mutual funds will outperform in the future. To date, an overwhelming body of academic research has …Read More.
Worried about equity valuations? Trying to time the market to sit out a correction? Take Larry Swedroe’s short quiz. We have data for 91 calendar years (or 1,092 months) of U.S. investment returns over the period 1927 through 2016. The average monthly return to the S&P 500 has been 0.95%, and the average quarterly return …Read More.
BAM ALLIANCE member Stuart Vick Smith offers five tips for helping to teach your kids about money. As parents, we continually struggle to pass knowledge on to our children. Unfortunately, sometimes financial knowledge is left off the list or lost in translation. To prevent that happening, consider the following five tips to help teach your …Read More.
Larry Swedroe on research into how VRP portfolios fare in market crises. There are a multitude of alternative investments for investors to consider, largely because Wall Street is exceptionally good at creating products, and at creating demand for those products, even when there shouldn’t be. However, among the many alternatives from which to choose, there …Read More.