The Crucial Nature of Patience and Diversification
Larry Swedroe explains why new research into the volatility of equity risk premiums shows that patience and factor diversification are crucial. “Success in investing doesn’t correlate with IQ. Once you have ordinary intelligence, what you need is the temperament to...
Managing Risk With Factors
Larry Swedroe unpacks an illustration supporting factor diversification for portfolio efficiency. The holy grail of investing is the search for investment strategies that can deliver higher expected returns without increased risk, or the same expected return with reduced risk. In...
To Be a Retirement Savings Pro, Act as if ‘Someday’ Is Today
Can we better save for retirement by acting as if that “someday” is today? While on vacation recently in the Abaco Islands, on the outer rim of the Bahamas, I found myself on an important mission: taking the golf cart...
Don’t Write Off Value
Larry Swedroe takes a look at the data and builds his case for why investors should continue to expect a value premium going forward. Recency bias—the tendency to give too much weight to recent experience and ignore long-term historical evidence—underlies...
When Manager Skill Is Really Factor Exposure
Larry Swedroe unpacks a recent study suggesting that, when selecting active mutual funds, investors confuse loading on common factors with managerial skill. Extensive and readily available data show that the persistence of active managers’ outperformance is well below what we...
The Benefits of Managed Volatility Strategies
Larry Swedroe tackles research into how managing volatility shapes outcomes and utility. There’s a large body of research demonstrating that, while past returns do not predict future returns, past volatility largely predicts future near-term volatility. For example, since 1926, the...
Bitcoin: Investment or Bubble?
Larry Swedroe explores whether bitcoin is a worthwhile investment or is still purely speculative. As the director of research at Buckingham Strategic Wealth and The BAM Alliance, it’s not surprising that I’ve been getting lots of calls lately about investing...
Financial Wellness and What Your Financial Advisor Isn’t Telling You
Manisha Thakor and Financial Finesse CEO Liz Davidson explore what it means to achieve financial wellness. Manisha Thakor and Financial Finesse CEO Liz Davidson explore what it means to achieve financial wellness, and why more and more companies are offering...
Checking in on 2017’s ‘Sure Things’
Larry Swedroe checks in on how 2017’s “sure thing” predictions fared through the third quarter. At the start of 2017, I compiled a list of predictions that gurus had made for the upcoming year, along with some items that I...
More Money Is Lost Waiting for Corrections Than in Them
Worried about equity valuations? Trying to time the market to sit out a correction? Take Larry Swedroe’s short quiz. We have data for 91 calendar years (or 1,092 months) of U.S. investment returns over the period 1927 through 2016. The...
