Accepting tracking error risk and integrating evidence-based investing within your philosophy, you’re able to take advantage of what indexing brings to the table. Ryan Jennings highlights a few areas where this approach can capture what traditional indexing leaves behind. Prior to joining Buckingham Strategic Wealth, I worked with institutional clients educating them and supporting their …Read More.
New report, same old story. Larry Swedroe unpacks highlights from the most recent SPIVA scorecard that offer still more powerful evidence of active management’s continued failure to persistently outperform. Since 2002, S&P Dow Jones Indices has published its S&P Indices Versus Active (SPIVA) Scorecard, which compares the performance of actively managed equity mutual funds to …Read More.
There is clear evidence the political climate affects investors’ views of the economy and the stock market. Larry Swedroe encourages investors to separate political affiliations from investment decisions. The fourth quarter of 2018 was a pretty miserable one for investors, with the S&P 500 Index losing 13.5%. And it was looking a lot worse on …Read More.
Not all financial planning—or financial planners—are equal. Tim Maurer explores how you can go beyond just sharing knowledge with your clients to truly inspire understanding and wisdom. Not all financial planning—or financial planners—are equal. The Certified Financial Planner™ Board has done much to standardize a substantive base level of knowledge for aspiring advisors. But the value of …Read More.
There can be large differences in passively managed funds, even those within the same asset class. Larry Swedroe looks at 3 small value funds and shows how their performance is explained by exposure to factors-asset pricing models. Index funds and structured passive asset class funds are similar in the way that rectangles and squares are …Read More.
Prices will not change if the expected happens. It is the unexpected that causes prices to move. Larry Swedroe shares some examples where good news has led to bad results and vice versa. French economist Louis Bachelier long ago remarked: “Clearly the price considered most likely by the market is the true current price: if …Read More.
From number crunchers to relationship builders, the role of wealth manager has transformed over the last 20 years. Wealth Advisor, Adam Yofan, comments in this article that gets to the heart of how modern advisors are more immersed than ever in their clients’ lives. From number crunchers to relationship builders, the role of wealth manager …Read More.
In the third and final installment of his annual look at what the markets taught investors over the prior year about prudent investment strategy, Larry Swedroe concludes his list with 2018’s lessons eight through 11. Every year, the markets provide us with lessons on the prudent investment strategy. I’ve so far covered what they taught …Read More.
Do the managers of commercial bank-affiliated mutual funds act in ways that serve their parent organizations’ interests at the expense of investors? Larry Swedroe unpacks research into this double agency problem and its affect on funds’ performance. About 40% of mutual funds are run by asset management divisions of groups whose primary activity is commercial banking. This …Read More.
Is the conventional wisdom that equates turnover and shorting with tax inefficiency actually right? Larry Swedroe unpacks research showing that relaxing quantitative tax-aware strategies’ long-only constraint can drastically increase tax benefits. “Conventional wisdom” can be defined as ideas that are so accepted they go unquestioned. Unfortunately, conventional wisdom is often wrong. Two good examples are …Read More.