Fixed Income Quick Take: What Is a Bond Ladder?

Laddered bond portfolios can be customized to meet each investor’s unique needs. Plus, they help reduce the risk associated with investing in fixed income. Fixed Income Advisor Blerina Hysi on the benefits of a well-structured bond ladder. By clicking on any of the links above, you acknowledge that they are solely for your convenience, and […]

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Topics: Advice, Investing

Has the Size Premium Disappeared?

Financial research has uncovered many relationships between investment factors and security returns. As director of research for Buckingham Strategic Wealth and The BAM Alliance, one of the most-asked questions I receive is whether such relationships will continue after that research has been published. Said another way, if everyone knows about a factor premium, should we […]

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Topics: Advice, Market Insights

Recency Bias Can Derail You

For the 10-year period 2008 through 2017, a very wide dispersion in returns has existed in markets. As the following table shows, U.S. stocks far outperformed international stocks, and growth stocks outperformed value stocks. Given these results, it’s no surprise I have been getting lots of queries from investors about their international equity investments. Any […]

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Topics: Advice, Investor Behavior

The Differences Between the Equity and Fixed Income Markets

The bond market is less transparent in pricing and trades less frequently than equity markets. Blerina Hysi explains how a trusted advisor can help navigate these market inefficiencies and prevent you from suffering excessive mark-ups. Video Link – https://vimeo.com/258876997 By clicking on any of the links above, you acknowledge that they are solely for your […]

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Topics: Advice, Investing, Investment Strategy

Yet More Investing Lessons from 2017

Every year, the markets offer lessons on the prudent investment strategy. So far, we’ve covered what they taught us last year in lessons one through three and four through seven. Today, we’ll finish off 2017’s list with lessons eight through 10. Lesson 8: Hedge funds are not investment vehicles, they are compensation schemes. This one has been appearing […]

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Topics: Advice, Investing, Investment Strategy

More Investing Lessons from 2017

Earlier this month, we began discussing what the markets taught us in 2017 about prudent investment strategies. We tackled lessons one through three then, so today we’ll resume with lessons four through seven. Lesson 4: Don’t make the mistake of recency. Last year’s winners are just as likely to be this year’s dogs. The historical evidence […]

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Topics: Advice, Investing, Investment Strategy

Investing Lessons from 2017

Every year, the markets provide us with lessons on the prudent investment strategy. Many times, markets offer investors remedial courses, covering lessons it taught in previous years. That’s why one of my favorite sayings is that there’s nothing new in investing—only investment history you don’t yet know. Last year supplied 10 important lessons. As you […]

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Topics: Advice, Investing, Investment Strategy

More Money Is Lost Waiting for Corrections Than in Them

We have data for 91 calendar years (or 1,092 months) of U.S. investment returns over the period 1927 through 2016. The average monthly return to the S&P 500 has been 0.95%, and the average quarterly return was 3.0%. With that background, here’s a short, four-question quiz: If we remove the returns from the best 91 […]

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Topics: Advice, Investing, Investment Strategy

Testing the Fama-French Five-Factor Model

The history of asset pricing models is one of evolution. As anomalies are discovered, our knowledge advances and new models are developed. Building on 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 […]

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Topics: Advice, Market Insights