I get Morningstar Advisor magazine free every month. I usually find little value in it as most articles are buy and hold drivel but this month they had some interesting articles devoted to factor investing. Numerous studies have been done that identify certain factors that have outperformed the market: 1. Value investing2. Momentum3. Smaller stocks4. […]
http://www.reuters.com/article/2012/09/26/us-fidelity-bonds-idUSBRE88P1U520120926 Fidelity’s stock funds eclipsed by bond and money market assets Individual investors usually have the worst timing. They tend to get into bull markets near the top and get out of bear markets near the bottom. All in all this looks like good news for long term stock market bulls.
I spend a lot of time reading research papers on areas of tactical asset allocation (momentum, trend following, counter trend following, etc). Lately I have read a few papers on avoiding momentum crashes. Since our firm uses a lot of momentum strategies, this is a subject near and dear to my heart. Momentum crashes are […]
We are always interested by ways to reduce portfolio risk while potentially increasing returns. Risk parity is a strategy we have previously written about that can accomplish this, volatility stabilization is another. Let’s say an investor has a simple portfolio that is invested 100% in the S&P 500 at all times. While the investment is […]
I was recently interviewed for a podcast on retirement for WebTalkRadio.net, below is the link. I am at about 4 minutes in: http://webtalkradio.net/2012/08/19/the-new-retirement-transitions/
My 13yr old son loves wearing shorts and a t shirt. He loves this so much that he wears shorts no all year round, no matter how cold it is outside. He does this for two reasons: 1. That is the style now2. He is 13 and just doesn’t know any better He reminds me […]
There were two articles in the WSJ this morning about the troubles some active managers are having this year. This first focused on global macro hedge funds and the second focused on go anywhere global mutual funds. Here are the links if you are a subscriber: http://online.wsj.com/article/SB10000872396390444246904577570811089779908.html?mod=WSJ_hp_LEFTWhatsNewsCollection http://online.wsj.com/article/SB10000872396390443343704577553351502926094.html?mod=ITP_thejournalreport_1 This is not surprising as global macro […]