Be Leery Of Hedge Funds
The investment successes of the Yale Endowment led many other endowments, foundations and even high-net-worth individuals to consider adopting the so-called “Yale Model.” The model included a focus on alternative investments and attempts to capture the liquidity premium available in...
A Factor Focused Book To Read
Although not for novice investors, Andrew Ang’s new book, “Asset Management: A Systematic Approach to Factor Investing,” represents a comprehensive, clearly written and accessible review of the latest thinking in modern financial theory. It provides some important lessons that investors...
Rethinking Money, Not as Good or Bad but as a Tool
Almost everything we’re taught about money is focused on spending it and saving it. Parents, teachers and even personal finance books discuss saving money as keeping it, increasing it and controlling it. Saving money involves figuring out ways to get...
Avoid the Ultimate R.I.P.-Off
Many estate planners advise their clients to complete a useful, albeit sobering, exercise. The exercise calls for the client to assume they have died, and that their beneficiaries are gathered around the dining room table dealing with the aftermath. The...
Debunking Private Equity’s Myth
As we have discussed, the investment success of the Yale Endowment led many endowments, foundations and even high-net-worth individuals to consider adopting the strategies utilized in the so-called “Yale Model.” This included a focus on alternative investments and attempts to...
Deflation and Stock and Bond Returns
Overview: With expected inflation rates very low, there will be significant attention on the possibility of deflation causing the stock market to fall. This blog examines the relationship between the rate of inflation and stock and bond returns. Generally, the research...
Wall Street’s Lame Excuses for Active Fund Performance
The securities industry is working itself into a frenzy trying to explain why you should ignore historical data that indicates most actively managed funds underperform their benchmarks. Some of the reasons they provide do not withstand scrutiny. Here’s a small...
Rethinking Money, Not as Good or Bad but as a Tool
Almost everything we’re taught about money is focused on spending it and saving it. Parents, teachers and even personal finance books discuss saving money as keeping it, increasing it and controlling it. Saving money involves figuring out ways to get...
The Effects Of Market Uncertainty
In doing some related research, I came across a Federal Reserve Bank of Atlanta research paper that I thought was worth sharing, especially in light of the tendency in recent years for many investors to stretch for yield. Over the...
