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.
Tim Maurer was assigned a task: put together a list of his five favorite books from the world of personal finance. He came up with 10. In this video, Maurer, director of advisor engagement for the BAM ALLIANCE, walks us through his wide-ranging library, which includes books that focus on financial planning, behavioral economics, life …Read More.
When stock markets drop, it can be tough to see past the pain and recall that your investment plan incorporates such risks. To help you take the long-term view, Chief Investment Officer Jared Kizer puts October’s market moves into perspective. When the stock market drops, it can be tough to see past the immediate pain. …Read More.
One way to evaluate an equity factor’s pervasiveness is to determine whether it provides a premium at the sector/industry level. With this metric in mind, Larry Swedroe unpacks new research that shows the value and profitability factors pass the test. In our book, “Your Complete Guide to Factor-Based Investing,” Andrew Berkin and I provide five …Read More.
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.
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.
The decisions we make surrounding family wealth and lifestyle planning can oftentimes be uncomfortable. Wealth advisor Jeff Johnson breaks down where and how you might want to start your family’s next important conversation about money. I’ve been a close observer of the way families make, communicate and implement financial decisions for most of the last …Read More.
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.
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.
Mastering money decisions. Tim Maurer on how to make the Elephant (emotion) and Rider (reason) work together. The most compelling findings regarding financial decision-making are found not in spreadsheets, but in science. A blend of psychology, biology and economics, much of the research on this topic has been around for years. Its application in mainstream …Read More.
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.
There’s a vastly different, more rewarding way to accomplish what we call “work” than how many of us have been taught. Tim Maurer asks: What would it look like if we did our job, profession or calling as an artisan? You likely feel as though you don’t have enough time to watch a video that is …Read More.
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.
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.
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.