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Smart(er) Investing – The Easy Way

By |2020-05-29T10:16:45-04:00May 29th, 2020|Research Insights, Factor Investing, Podcasts and Video, Women in Finance Know Stuff, Academic Research Insight|

Most of the time we make you "earn your education" by reading our posts to build up your knowledge of the latest and greatest academic research concepts. That said, we understand there are different ways [...]

Compound Your Knowledge Ep 29: What’s the Story Behind EBIT/TEV?

By |2020-05-19T10:48:00-04:00May 19th, 2020|Compound Your Knowledge, Research Insights, Podcasts and Video, Media, Value Investing Research|

This week we discuss Ryan's article examining the Enterprise Multiple, EBIT/TEV, or Earnings Before Interest and Taxes (EBIT) divided by the firm's Total Enterprise Value (TEV). Article Links: What's the Story Behind EBIT/TEV [...]

Absolute Value Versus Relative Value: A Quick Note on the Value Debate

By |2020-05-11T11:05:52-04:00May 11th, 2020|Factor Investing, Value Investing Research|

We've saw a spike in questions the last few days related to the various "value is really cheap posts" coming into the mainstream. This conversation was elevated after Cliff Asness posted the best piece of [...]

The Size Effect in Multifactor Portfolios

By |2020-05-11T09:00:07-04:00May 7th, 2020|Research Insights, Size Investing Research|

The lack of a statistically significant size premium in the U.S. since the publication of Rolf Banz’s 1981 paper, “The Relationship Between Return and Market Value of Common Stocks,” published in the Journal of Financial [...]

Cheap vs. Expensive Factors: Does Valuation Matter for Future Returns?

By |2020-05-05T08:28:30-04:00May 5th, 2020|Research Insights, Factor Investing, Guest Posts, Value Investing Research, Momentum Investing Research, Low Volatility Investing|

Tesla (TSLA) breached the $100 billion market capitalization in January 2020 and became the most valuable car manufacturer globally. However, valuing the company is challenging given the growth profile, complexity of the business, and erratic [...]

Trend Following is Everywhere

By |2020-04-22T09:50:30-04:00April 23rd, 2020|Research Insights, Factor Investing, Larry Swedroe, Trend Following|

Similar to some better-known factors, such as size and value, time-series momentum (TSMOM) historically has demonstrated abnormal excess returns. For the less familiar with trend following it's worth your time to review Alpha Architects white [...]

Dividends, Stock Prices, and Inflation.

By |2020-04-17T11:39:57-04:00April 17th, 2020|Dividends and Buybacks, Factor Investing, Guest Posts|

Building on the concepts presented in my Dividends Are Different article, here we present data and observations highlighting the relationship between inflation and 1) company fundamentals, 2) dividends, and 3) stock market movements.It may be [...]

Is There a Tail Risk Premium in Stocks?

By |2020-04-15T08:36:40-04:00April 16th, 2020|Crisis Alpha, Research Insights, Factor Investing, Larry Swedroe|

It has been well documented both that stock returns have much fatter tails than a normal distribution would generate, and that tail events occur much more frequently than a normal curve would predict.editor's note: This [...]

How Cheap (or Expensive) Are Value Stocks?

By |2020-04-14T09:34:57-04:00April 14th, 2020|Research Insights, Value Investing Research, Tactical Asset Allocation Research|

What are the two most annoying words in forecasting? IT DEPENDS. In this piece we look at the "value" of value, which has been beaten down recently. A few questions arise in this scenario: How [...]

Trend Following Reality: You Need Trends to Trend-Follow

By |2020-04-13T10:56:14-04:00April 13th, 2020|Research Insights, Factor Investing, Trend Following, Basilico and Johnsen, Academic Research Insight|

You Can't Always Trend When You Want Abhilash Babu, Brendan Hoffman, Ari Levine, Yao Hua Ooi, Sarah Schroeder and Erik Stamelos The Journal of Portfolio Management, March 2020A version of this paper can be found hereWant to read our summaries of academic [...]

The Economic Consequences of Pandemics: A Guide from History

By |2020-04-10T12:46:23-04:00April 10th, 2020|Research Insights, Factor Investing, Academic Research Insight, Tactical Asset Allocation Research, Macroeconomics Research|

Pandemics: Long-Run Effects Òscar Jordà, Sanjay R. Singh, Alan M. TaylorCEPR PressA version of this paper can be found here Want to read our summaries of academic finance papers? Check out our Academic Research Insight category What are [...]

Volatility, Risk Management, and Market Chaos: Research that Might Help

By |2020-04-06T12:57:26-04:00April 6th, 2020|Crisis Alpha, Research Insights, Factor Investing, Trend Following, Basilico and Johnsen|

Given the recent market decline, we thought it would be helpful to review some of our blog posts from the past that may be relevant to the current crisis atmosphere.  These posts focus on research [...]

Pandemics and Factor Investing: A Glimpse into the Past

By |2020-04-03T12:17:29-04:00April 3rd, 2020|Research Insights, Factor Investing, Academic Research Insight|

Equity Styles and the Spanish Flu Guido Baltussen, Pim van VlietA version of this paper can be found hereWant to read our summaries of academic finance papers? Check out our Academic Research Insight category What are the Research [...]

An Empirical Challenge for Trend-Following

By |2020-03-30T10:40:00-04:00March 30th, 2020|Research Insights, Factor Investing, Trend Following, Basilico and Johnsen, Academic Research Insight, Momentum Investing Research, Tactical Asset Allocation Research|

Editor's Note: For the foreseeable future, we'll be focusing on research that explores investment strategies that are believed to help investors manage risk and diversify their portfolios. Time Series Momentum: Is it There? Dashan Huang [...]

Compound Your Knowledge Ep 27: Value, Momentum, and Low Volatility

By |2020-03-30T10:15:05-04:00March 30th, 2020|Compound Your Knowledge, Research Insights, Podcasts and Video, Media, Value Investing Research, Momentum Investing Research|

In this video, we examine two articles highlighted on our site. The first article, written by Larry Swedroe, examines the Value and Momentum performance over the past two years ( highlighting great research by the [...]

Corporate Governance, ESG, and Stock Returns around the World

By |2020-03-26T12:24:35-04:00March 26th, 2020|ESG, Research Insights, Factor Investing, Basilico and Johnsen, Academic Research Insight, Macroeconomics Research|

Corporate Governance, ESG, and Stock Returns around the World Mozzafar KahnFinancial Analysts JournalA version of this paper can be found hereWant to read our summaries of academic finance papers? Check out our Academic Research Insight category [...]

Is There Something Wrong with the Value Premium?

By |2020-03-24T12:13:15-04:00March 24th, 2020|Research Insights, Factor Investing, Larry Swedroe, Value Investing Research|

The dramatic underperformance of the value premium since 2018, among the largest drawdowns in history, has led many to question its existence. It is certainly possible that what economists call a “regime change” could cause [...]

The Use and Value of Financial Advice for Retirement Planning: Part 1/2

By |2020-03-17T08:19:27-04:00March 17th, 2020|Financial Planning, Research Insights, Factor Investing, Basilico and Johnsen, Academic Research Insight, Value Investing Research|

The Use and Value of Financial Advice for Retirement Planning W.V. Arlow, K.C. Brown, and S.E. JenksJournal of Retirement, Winter 2020A version of this paper can be found hereWant to read our summaries of academic finance [...]

Low Volatility-Momentum Versus Value-Momentum Factor Portfolios

By |2020-03-13T11:40:42-04:00March 13th, 2020|Factor Investing, Guest Posts, Value Investing Research, Momentum Investing Research, Low Volatility Investing|

Boring versus Cheap Winners