Explaining The Value Premium
The existence of a value premium—the difference in returns between high book-to-market stocks and low book-to-market stocks—has been well-documented. However, there’s a major controversy as to its source. Some believe it can be explained by risk—that value stocks are the...
Ignore Forecasters At All Costs
The historical evidence shows us that, in the long run, a thoughtfully designed, diversified portfolio of passively managed funds typically beats the performance of all but a few active managers. And while it’s simple to structure such a portfolio, it’s...
Learn From the Cramer Kerfuffle
I am no fan of Jim Cramer. While I fully understand his persona is a carefully crafted schtick designed to entertain, his Mad Money program harms Main Street investors. His stock-picking recommendations are no more likely to be accurate than...
8 Tax Tips Investors Should Know
It’s that time of the year again. Everyone is weighing in with tax tips to prepare investors for the tax preparation that follows the new year. I didn’t want to be left out of the fun, so I consulted with...
The Consistency of Inconsistency, and How to Adapt Your Financial Goals
When my children took their first steps, they were tentative. They were quick to grab the nearest object to keep their balance. However, it didn’t take long before they started acting like they were invincible. Seemingly overnight, my children went...
Endowment Returns Are Worsening
Despite the publicity surrounding the long-term investment performance of certain endowment funds, such as those belonging to Yale and Harvard, little has been known about the overall performance of university endowments until recently. We are learning more these days, thanks...
The Guide To Happy Giving
Giving Tuesday might officially be behind us, but let’s face it—we’re just getting started. 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...
Controlling Your Emotions When Deciding What’s Affordable
Many years ago, my wife and I went to dinner with another couple whom I’ll call Pam and Stan. I went to high school with Pam, and my wife had grown up knowing Stan. They were among the smartest and...
The Consistency of Inconsistency, and How to Adapt Your Financial Goals
When my children took their first steps, they were tentative. They were quick to grab the nearest object to keep their balance. However, it didn’t take long before they started acting like they were invincible. Seemingly overnight, my children went...
Don’t Give Till It Hurts
I love this time of year, except for one teeny, tiny thing: charitable giving guilt. You know exactly what I’m talking about. We’ve all walked past that red bucket without dropping in any money. We’ve all said “no” to those...
