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A Tale Of 3 Small Value Funds

Index funds and structured passive asset class funds are similar in the way that rectangles and squares are similar. All squares are rectangles, but not all rectangles are squares. Similarly, while all index funds are passively managed, not all passively managed structured asset class (or factor-based) funds attempt to replicate the returns of popular retail indexes like the S&P 500 or the R...

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2018 Report Card For Hedge Funds

Hedge funds entered 2019 coming off their ninth-straight year of trailing U.S. stocks (as measured by the S&P 500 Index) by significant margins. And for the 10-year period ending 2017—one that included the worst bear market in the post-Depression era—the HFRX Global Hedge Fund Index produced a negative return (-0.4%), underperforming every single major equity and bond asset class. So how d...

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3 Factor Investing Myths

As the chief research officer for Buckingham Strategic Wealth and the BAM Alliance, I receive many questions from advisors and investors regarding concerns about factor-based investment strategies. A brief background on factor-based investing is helpful before discussing those concerns. William Sharpe, Jack Treynor, John Lintner and Jan Mossin are typically given most of the credit for introducing...

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When Value Performs Poorly

In the U.S. stock market over roughly the last 10 years, value stocks have performed poorly relative to growth stocks. In fact, using Professor Ken French’s data, value appears to have experienced its sixth-worst drawdown ever over the period of January 2007–September 2018 with a cumulative underperformance of growth stocks of –32.2 percent. This contrasts with the long-term data showing tha...

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Do Surprises Really Move Markets?

French economist Louis Bachelier long ago remarked: “Clearly the price considered most likely by the market is the true current price: if the market judged otherwise, it would not quote this price, but another price higher or lower.” Prices will not change if the expected happens. It is the unexpected that causes prices to move. In an efficient market, any new information the market receives w...

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From Divorce Issues to Shoe Spending, Financial Advisers are Hearing it All

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. Find it on The Pittsburgh Post-Gazette By clicking on any of the links above, you acknowledge that they are solely for your con...

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Retirement Tips for a Long Lifetime

Women face all the same issues that men face in retirement, plus they have additional complicating factors. Larry Swedroe and Katie Keary address these factors and offer tips to help even the scales. Find it on Kiplinger.com By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or ...

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How Federal-Government Workers Should Approach Their ‘Shutdown Debt’

After an historically long furlough for federal-government workers, paychecks are finally starting to hit bank accounts. Now, how do those same workers manage the debt built while out of work? Wealth Advisor Kent W. Schmidgall comments in this MarketWatch article that addresses that very question. Find it on MarketWatch.com By clicking on any of the links above, you acknowledge that they are solel...

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Yet More Investing Lessons from 2018

Every year, the markets provide us with lessons on the prudent investment strategy. I’ve so far covered what they taught us in 2018 in lessons one through three and then lessons four through seven. We’ll finish up today with lessons eight through 11. Lesson 8: Inflation wasn’t, and isn’t, inevitable. One of the most persistently asked questions I’ve received since 2009 is some version...

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More Investing Lessons from 2018

Every year, the markets provide us with lessons on the prudent investment strategy. Earlier this week, I covered lessons one through three. Today, I’ll tackle lessons four through seven. Lesson 4: Volatility doesn’t stay low forever. Your discipline will be tested. While the VIX’s long-term average has been about 20, we entered 2018 with the Volatility Index well below that, at about 11. In...

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What Does It Mean To Have Enough? It’s Up To You.

How much is enough? It’s a broad question, yet it’s easy to find specific guidance on the amount of money you need to achieve a fulfilling retirement. Tim Maurer says instead of chasing an arbitrary figure, start by asking a better financial-planning question: What do you want out of life? By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do...

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Investing Lessons from 2018

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.” 2018 supplied 11 important lessons. As you may note, many of them are repeats fr...

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Retirees Need a Life Plan, Not Just a Financial One

In a review of Larry Swedroe’s newest book, “Your Complete Guide to a Successful and Secure Retirement,” David Nicklaus, of the St. Louis Post-Dispatch, explores the book’s main themes and why a retirement plan should include more than money. Find it on STLToday.com By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not ...

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Conflicting Interests in Commercial Banks’ Investment Management

About 40% of mutual funds are run by asset management divisions of groups whose primary activity is commercial banking. This creates a potential conflict of interest—fund managers who are employees of commercial (or investment) banking organizations may act in ways that benefit their organizations’ interests at the expense of fund investors. Alternatively, lending could generate private info...

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Ode To Jack Bogle

Late index fund pioneer and Vanguard founder John Bogle worked relentlessly for many decades on behalf of investors. Larry Swedroe has this remembrance of his life and legacy as low-cost, low-fee investing’s greatest champion. Find it on ETF.com By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, spo...

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Long/Short Portfolios Can Improve Tax Efficiency

“Conventional wisdom” can be defined as ideas that are so accepted they go unquestioned. Unfortunately, conventional wisdom is often wrong. Two good examples are that millions of people once believed the conventional wisdom that the Earth is flat, and millions also believed that the Earth is the center of the universe. Much of today’s conventional wisdom on investing is also wrong. Today we...

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Financial Planning for Investors in Their 40s

In your 40s, plan for the present through cash flow management and prepare for the future by saving and investing with foresight and discipline. Tim Maurer joins CNBC’s “Power Lunch” team to talk about what financial steps 40-something investors should pursue first. Find it on CNBC.com By clicking on any of the links above, you acknowledge that they are solely for your convenienc...