Here are the themes found in financial planning research. What’s missing?
By Tommi Johnsen, PhD|January 22nd, 2024|Financial Planning, Research Insights, Basilico and Johnsen, Academic Research Insight|
In this academic article, the authors pull together an analysis of the types of thematic structures found most often in financial planning studies as well as the theories most often referenced.
Outperforming Cap- (Value-) Weighted and Equal-Weighted Portfolios
By Larry Swedroe|January 19th, 2024|Research Insights, Factor Investing, Larry Swedroe, Other Insights, Momentum Investing Research, Size Investing Research|
Antonello Cirulli and Patrick Walker, authors of the December 2023 study “Outperforming Equal Weighting,” examined whether equally weighted portfolios could be enhanced by avoiding negative exposure to some of the most prominent factor anomalies documented in asset pricing literature.
Financial Literacy in the US…Doesn’t look great!
By Elisabetta Basilico, PhD, CFA|January 17th, 2024|Financial Planning, Intangibles, Research Insights, Basilico and Johnsen, Academic Research Insight, Corporate Governance|
This paper aims to analyze financial literacy in the United States, utilizing the most recent data from the National Financial Capability Study (NFCS) collected in 2021 by the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation. The paper focuses on the importance of financial literacy, particularly in the context of the economic conditions in the US, such as the COVID-19 pandemic, inflation, and changes in the financial system.
Peer-Reviewed Theory and Expected Stock Returns
By Larry Swedroe|January 12th, 2024|Intangibles, Larry Swedroe, Research Insights, Factor Investing, Guest Posts, Other Insights|
The risk-based explanation provided by a peer-based review is a necessary ingredient for considering investment, but it is not a sufficient ingredient.
Global Factor Performance: January 2024
By Wesley Gray, PhD|January 8th, 2024|Index Updates, Research Insights, Factor Investing, Tool Updates, Tactical Asset Allocation Research|
Standardized Performance Factor Performance Factor Exposures Factor Premiums Factor Attribution Factor Data Downloads
Is a quantitative defensive factor strategy feasible? Yes.
By Tommi Johnsen, PhD|January 8th, 2024|Quality Investing, Volatility (e.g., VIX), Asset Growth, Factor Investing, Research Insights, Basilico and Johnsen, Academic Research Insight, Low Volatility Investing|
We examine the research around the question of what the proper framework for building a defensive factor strategy is.
Crowded Trades Increase Crash Risks
By Larry Swedroe|January 5th, 2024|Liquidity Factor, Larry Swedroe, Research Insights, Guest Posts|
Crowded equity positions in anomalies remain and have significant impacts in terms of risk and return dynamics.
Do racial barriers prevent Black and Hispanic households from pursuing financial advice?
By Elisabetta Basilico, PhD, CFA|January 2nd, 2024|Financial Planning, Intangibles, Research Insights, Basilico and Johnsen, Academic Research Insight, Corporate Governance|
This article seeks to examine what research says about the interplay between risk tolerance, financial literacy, and trust and their collective impact on the pursuit of financial advice by Black and Hispanic households.
DIY Trend-Following Allocations: January 2024
By Ryan Kirlin|January 2nd, 2024|Index Updates, Research Insights, Tool Updates, Tactical Asset Allocation Research|
Full exposure to domestic equities. Full exposure to international equities. Full exposure to REITs. No exposure to commodities. Partial exposure to intermediate-term bonds.
Fifty Shades of Grey Swans: Timeless Risks with a Modern Twist
By Matt Tracey|December 29th, 2023|Research Insights, Guest Posts|
The world is complex and ever-changing; news travels at warp speed, events happen fast, and popular narratives can distract and mislead us. Many risks important for our portfolios are new, hidden, or nuanced in some underappreciated way—and likely to be misunderstood and mispriced in the markets. Other risks can hide in plain sight. Good risk management can be described as a balancing act that employs the first principles of investing, lessons from history, behavioral psychology, a little math, and even our imagination in service of our objective: to detect and defend against the risks we can foresee and fortify our portfolios against those we cannot. In short: we need informed creativity, not calculation.