How to Crush the CFPⓇ Exam ????: Part 1
By Jess Bost|September 12th, 2023|Women in Finance Know Stuff, Guest Posts, Other Insights, Investor Education|
Let’s talk about the right approach(es) and the proper study techniques you need to pass the CFPⓇ exam with confidence and get the certification you need to advance your career in finance and investing.
Trend Following and Momentum Turning Points
By Elisabetta Basilico, PhD, CFA|September 11th, 2023|Research Insights, Factor Investing, Basilico and Johnsen, Trend Following, Academic Research Insight, Momentum Investing Research|
Trend follower nerd alert: This study is important because it offers a comprehensive analysis of TS momentum strategies, its unifying framework that links performance to underlying variables, and its practical implications for investors seeking to enhance their understanding of momentum investing and improve their portfolio performance.
Implications of Regime-Shifting Stock-Bond Correlation
By Larry Swedroe|September 8th, 2023|Larry Swedroe, Research Insights, Academic Research Insight, Tactical Asset Allocation Research|
The correlation between stocks and bonds should be a critical component of any asset allocation decision, as it impacts not only the overall risk of a diversified multi-asset class portfolio but also the risk premia one should expect to receive for taking risk in different asset classes. The problem for investors is that the correlation between stocks and bonds fluctuates extensively across time and economic regimes.
Global Factor Performance: September 2023
By Wesley Gray, PhD|September 7th, 2023|Index Updates, Research Insights, Factor Investing, Tool Updates, Tactical Asset Allocation Research|
The following factor performance modules have been updated on our Index [...]
Do Short-Term Factor Strategies Survive Transaction Costs?
By Tommi Johnsen, PhD|September 5th, 2023|Transaction Costs, Factor Investing, Research Insights, Basilico and Johnsen, Academic Research Insight, Behavioral Finance, Momentum Investing Research|
Short term return anomalies are generally dismissed in the academic literature "because they seemingly do not survive after accounting for market frictions.” In this research, short term “factors” are taken seriously and the authors argue the standard parameters may not apply for short horizons.
Dissecting the Investment Factor
By Larry Swedroe|September 2nd, 2023|Asset Growth, Predicting Market Returns, Larry Swedroe, Factor Investing, Research Insights|
Investment predicts returns because, given expected profitability, high costs of capital imply low net present value of new capital and low investment, and low costs of capital imply high net present value of new capital and high investment.
DIY Trend-Following Allocations: September 2023
By Ryan Kirlin|September 1st, 2023|Index Updates, Research Insights, Tool Updates, Tactical Asset Allocation Research|
Full exposure to domestic equities. Full exposure to international equities. No exposure to REITs. Partial exposure to commodities. No exposure to intermediate-term bonds.
The Determinants of Inflation
By Elisabetta Basilico, PhD, CFA|August 28th, 2023|Inflation Investing, Research Insights, Basilico and Johnsen, Academic Research Insight, Macroeconomics Research|
The findings from this Hidden Markov Model analysis provide policymakers with valuable insights into the nature and behavior of inflation regimes. This information can inform the design and implementation of monetary, fiscal, and regulatory policies to effectively manage inflation, stabilize the economy, and promote sustainable economic growth.
Structured Notes Are Financial Fairy Tales
By Larry Swedroe|August 25th, 2023|Transaction Costs, Larry Swedroe, Research Insights|
Wall Street’s product machine is continuously pumping out fairy tales; structured products should be avoided.
The case for the tax-free conversion of SMAs into an ETF via Section 351
By Bob Elwood|August 24th, 2023|ETF Operations, Research Insights, Guest Posts, Tax Efficient Investing|
This piece outlines the high-level benefits of the ETF structure, which boils down to market access, tax efficiency, and transparency. It covers the considerations for a 351 tax-free conversion and the mechanics and tax consequences of a 351 conversion.