Resources

Why Active Management Still Fails

A recent study only reinforces the important link between mutual fund costs and performance. However, as Larry Swedroe explains, its results happen to offer plenty of good news for investors on both sides of the active versus passive debate. Stock-picking pros aren’t stupid. They’re just expensive. —John Bogle, Money Magazine: 2011 Investor’s Guide   There’s a …Read More.

Credit Premium: Fact(or) Fiction

Are corporate bonds additive to portfolios that already own stocks and government bonds? Jared Kizer revisits this question with a look at the historical justification for, and some facts and fiction regarding, the investment-grade credit premium. The above title may well end up being my most significant marketing achievement. Yet, it is a good descriptor …Read More.

Time Is Not on Active Management’s Side

Larry Swedroe summarizes the recently released mid-year 2018 SPIVA report, which once again offers powerful evidence regarding active management’s inability to persistently outperform. Since 2002, S&P Dow Jones Indices has published its biannual Indices Versus Active (SPIVA) reports, which compare the performance of actively managed equity funds to their appropriate index benchmarks. The 2018 midyear scorecard includes …Read More.

Be Prepared for Losses

When it comes to understanding and then accepting the nature of the investment risks that you’ll have to live with over time, forewarned is forearmed. Larry Swedroe puts the size and volatility of equity premiums into better perspective. The stock premium—the annual average return of stocks minus the annual average return of one-month Treasury bills—has …Read More.

Re-Examining Emerging Markets Equity

Jared Kizer offers five lessons that reinforce some of the reasons investors should remain committed to a long-term emerging markets equity allocation. Emerging market equities have substantially underperformed the S&P 500 Index in 2018, with the S&P 500 up 6.5 percent and emerging markets down 4.4 percent through July. As I detailed in a recent …Read More.

An Awakening Bear?

Larry Swedroe offers some points to consider before you succumb to an urge to abandon your well-thought-out financial plan over recent swings in the stock market. Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than has been lost in the corrections themselves.—Peter Lynch On Oct. 10, 2018, the …Read More.

Examining Bond Premiums

Larry Swedroe takes a look at the two premiums that help to explain the performance of bond portfolios. In my previous blog, we looked at the size and volatility of the three equity premiums of beta, size and value. Today we turn our attention to the two premiums that help explain the performance of bond portfolios, …Read More.

Understanding The Financial Crisis

The 10th anniversary of the Great Financial Crisis has led many investors to seek guidance on how to prepare for the next market downturn. Larry Swedroe shares some lessons to help investors weather the next crisis with confidence. The 10th anniversary of the Great Financial Crisis is the subject of lots of articles and media …Read More.

Active Management’s Surprising Survival

Many investors still choose active management, despite the fact that it’s becoming even more of a loser’s game as time marches on. Fortunately, Larry Swedroe writes, more people are taking greater notice of the evidence. It’s truly an amazing paradox. According to the Thomson Reuters Lipper second-quarter 2018 snapshot of U.S. mutual funds and exchange-traded …Read More.




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