Join educated investors who get actionable, evidence-based wealth management insights delivered directly to their inbox.
Subscribe

Resources

The Only Market Volatility Prediction You Can Count On

Tim Maurer revisits some tools for dealing with the financial and emotional impact of unpredictable ups and downs. “As you can see, we’re experiencing rough air at the moment. But as a reminder, we can’t predict rough air,” said the Delta airline pilot ferrying me from St. Louis to Charleston (via Atlanta—always Atlanta), “so please keep your seatbelts on…

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),…

Rising Interest Rates and the Impact on Bond Portfolios

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…

Investing Lessons from 2017

Larry Swedroe unpacks lessons one through three from 2017. Every year, the markets provide us with lessons on the prudent investment strategy. Many times, markets offer investors remedial courses, covering lessons it taught in previous years. That’s why one of my favorite sayings is that there’s nothing new in investing—only investment history you don’t yet…

A Factor-Based Exploration of the ‘Sin’ Stock Anomaly

Larry Swedroe unpacks the results from a pair of studies that undertake a factor-based analysis of the “sin” stock premium. While socially responsible investing (SRI) and the broader category of environmental, socially responsible and governance (ESG) continue to gain in popularity, economic theory suggests the share prices of “sin” businesses will become depressed if a large…

The Crucial Nature of Patience and Diversification

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…

How to Avoid Being Victimized by Financial Deception

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…

Don’t Write Off Value

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…

Demystifying Planning & Paying for College: A MoneyZen Conversation with Wealth Advisor David Ressner

Manisha Thakor and David Ressner discuss saving for college, financial aid, calculating costs and even how to identify the right (priced) college. Demystify planning for college costs: Manisha Thakor and David Ressner discuss saving for college, financial aid, calculating costs and even how to identify the right (priced) college. By clicking on any of the…

When Manager Skill Is Really Factor Exposure

Larry Swedroe unpacks a recent study suggesting that, when selecting active mutual funds, investors confuse loading on common factors with managerial skill. Extensive and readily available data show that the persistence of active managers’ outperformance is well below what we would expect from pure chance (randomness). Making matters worse is that the equity managers who…

The Benefits of Managed Volatility Strategies

Larry Swedroe tackles research into how managing volatility shapes outcomes and utility. There’s a large body of research demonstrating that, while past returns do not predict future returns, past volatility largely predicts future near-term volatility. For example, since 1926, the correlation of returns between adjacent 60-trading-day periods is essentially zero. In contrast, the correlation rises…

©2018 Dental Wealth Advisors