Learning Center

Today’s investors may have drawn the proverbial “short straw.” From an investment perspective, they are confronting what might be considered a “perfect storm” creating strong head winds against higher expected returns. We’ll begin by discussing the three main factors conspiring against them, then analyze some of the options investors might employ to combat this problem....

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Previously, we examined three main factors conspiring against investors seeking higher expected returns. These factors can combine to generate a “perfect storm,” at least from an investment perspective, facing today’s investors. We then turned to the four most effective ways that investors can fight these head winds, which, oddly enough, have nothing to do with...

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J.B. Heaton, Nick Polson and J.H. Witte recently authored a nice short paper—it’s all of four pages—entitled “Why Indexing Works.” In it, the authors developed a simple stock selection model to explain why active equity fund managers tend to underperform their benchmark index. While most of the academic literature focuses on the efficiency of the...

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Many investors today are confronting what could be considered a “perfect storm” that is creating strong head winds against the pursuit of higher expected returns. So far, we have discussed the main factors currently working against investors, as well as some steps they might consider taking to help combat this problem. We will now examine...

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