How Risk and Uncertainty Affect Stock Returns
Asset pricing models imply that equity portfolios’ time-varying exposure to the market risk and uncertainty factors carries with it positive risk premiums. Turan Bali and Hao Zhou contribute to the body of literature on this topic through the study “Risk, Uncertainty, and...
“Your Compete Guide to Factor-Based Investing” : A Q&A With Larry Swedroe
Larry Swedroe discusses his new book, “Your Complete Guide To Factor-Based Investing,” while taking on smart beta, the investment factor “zoo” and how to think differently about diversification in a recent interview with ETF.com’s Drew Voros. Find it on ETF.com...
The Volatility of Active Management
S&P Dow Jones Indices has long provided a great service to investors with its semi-annual S&P Indices Versus Active (SPIVA) scorecards. The evidence offered in these reports has shown time and again that, regardless of the asset class, the vast majority...
Bottom-Up Construction Works Best With Multiple Investment Factors
CAPM was the first formal asset pricing model. Market beta was its sole factor. With the 1992 publication of their paper, “The Cross-Section of Expected Stock Returns,” Eugene Fama and Kenneth French introduced a new-and-improved three-factor model, adding size and...
Factor-Based Investing: A Q&A With Larry Swedroe
Larry Swedroe discusses his new book, “Your Complete Guide To Factor-Based Investing,” as well as the theory behind factor strategies and how investors can achieve their risk and return objectives through them, in a recent Q&A. Find it on MutualFunds.com...
The Guide to Happy Giving
The giving season is underway, with the holidays and year-end bearing down on us. So how can we transform one of the more stressful, and sometimes guilt-ridden, elements of the season into something more life-giving? Whether you’re giving to a...
An Interesting Test of Market Efficiency
Japan’s Government Pension Investment Fund (GPIF) is the world’s biggest state investor, trumping all other managed government retirement and sovereign wealth funds. Prime Minister Shinzo Abe’s drive to spur the Japanese economy out of its two-decade-and-growing economic slump, known as...
“Free Lunch” Investing Takes Time to Cook
As the director of research for The BAM Alliance, I’ve been getting lots of calls recently from investors questioning their international equity investments. This hasn’t been a surprise, as any time an asset class does poorly, a significant number of...
Some Alternatives to Big Banks and Their Record-High Fees
Fees are at an all-time high at the nation’s big banks, while the interest they pay is at an all-time low. Worse yet, evidence recently has come to light of the criminal abuse of a practice common among large banks since the...
On the Performance of Long-Serving Active Mutual Fund Managers
Given its importance to so many investors, it’s not surprising that there has been a tremendous amount of research into the performance of actively managed mutual funds. An overwhelming body of evidence has demonstrated that the vast majority of active...
