Skeptical On The Low-Vol ‘Factor’
The superior performance of low-volatility stocks was initially documented in the literature back during the 1970s, by Fischer Black, among others. That’s even before the size and value premiums were officially “discovered.” And since its existence became known, two main...
Passive Investing’s Foundations
Building upon the work of Harry Markowitz, the trio of John Lintner, William Sharpe and Jack Treynor are generally given most of the credit for introducing the first formal asset pricing model, the capital asset pricing model (CAPM). It was...
The Active or Passive Fund Debate is Over
As 2015 approaches, and you begin thinking about resolutions for the new year, make changing the way you invest your first priority. “Active investing” means trying to outperform benchmark indexes (such as the Standard & Poor’s 500 index) through market...
The Personality Trait That Dooms Your Investments
Do you play recreational tennis or golf? Would you bet your retirement savings you could beat Roger Federer or Tiger Woods? Of course you wouldn’t. In most areas of your life, you objectively assess your skill level, and make intelligent...
Making the Most of Resolution
You’ve heard that New Year’s resolutions have a horrendous success rate, right? One source suggests the number is as low as 8 percent … 8 stinking percent. But why? Is it for a lack of resolve? Somehow, I don’t think that’s it....
Questioning Value Of Endowments
Educational institutions hold billions of dollars in endowment funds. As of June 2013, the most recent data available, the five largest educational endowments (Harvard University, Yale University, The University of Texas system, Stanford University and Princeton University) collectively managed nearly...
Read This Before You Buy a Mutual Fund
According to the 2014 Investment Company Fact Book, the mutual fund industry in the United States manages an astounding $15 trillion in assets. That represents a whole lot of investors who must be disappointed with the performance of their actively...
