Risk-Managed Momentum Outperforms
Momentum has been found to be a persistent and pervasive factor in the returns not only of stocks, but of other asset classes (including bonds, commodities and currencies). Compared with the market, value and size risk factors, momentum in equities...
A Magical Metric That Isn’t
I was recently asked to comment on an article that appears in the April 2015 issue of the American Association of Individual Investors Journal. The article is based on the paper “Mutual Fund’s R2 as Predictor of Performance,” which was...
My Interview with Jack Bogle
Last week, I met Vanguard founder Jack Bogle in his office for a video interview. I had asked him if he would be willing to endorse a crowdfunding campaign to help underwrite the production costs of Trade-Up. Trade-Up is the...
Avoid The Recency Pitfall
Last year, U.S. real estate investment trusts (REITs) were the best-performing equity asset class. In addition, U.S. stocks far outperformed international stocks. Unfortunately, historical evidence demonstrates that individual investors tend to be performance chasers. They watch the markets, then buy...
Level: Can A Budgeting App Change The Way We Bank?
“Level is dedicated to rewriting the financial rulebook to create a secure future for the next generation.” That’s budgeting app Level Money’s stated mission, which can be found on their website’s “About Us” page. But even as lofty as that...
With Short-Term Goals, Go for a Bird in the Hand
A friend of mine recently sold his house. It will be a few years before he’ll buy another one. Because the house was worth a lot more than what he and his wife owed the bank on their mortgage, they...
No Refuge In Dividend Stocks
Despite the fact that traditional financial theory has long held that dividend policy should be irrelevant to stock returns, one of the biggest trends to occur in recent years has been a rush to invest in dividend-paying stocks. The heightened...
An Investment Lifeboat Drill Now Can Help Weather Future Disaster
Calm water makes a lifeboat drill much easier. We aren’t fighting the waves or the fear we feel during an emergency. Still, if the worst happens, and the drill becomes reality, at least we’ve rehearsed. We’ll know exactly what we...
The Supreme Court Decision in Tibble vs. Edison Is a Game-Changer
On May 18, the United States Supreme Court issued its decision in Tibble v. Edison International. On its face, the court’s holding is unremarkable. In a rare 9-0 decision, it ruled that plan sponsors have a continuing duty to review...
