Research Insights

//Research Insights

The Smart Money Indicator: A New Risk Management Tool

By |2019-02-08T09:25:33-04:00February 8th, 2019|Research Insights, Trend Following, Guest Posts, Tactical Asset Allocation Research|

We have all heard the mantra, “You can’t time the market!” But in reality, investors attempt to do just that every day as part of their tactical asset allocation strategies, which are less extreme variants [...]

Does Financial Education Actually Improve Outcomes? It’s Complicated.

By |2019-02-05T10:19:28-04:00February 5th, 2019|Research Insights, Investor Education|

The Causal Mechanism of Financial Education: Evidence from Mediation Analysis Fenella Carpena and Bilal ZiaA version of this paper can be found hereWant to read our summaries of academic finance papers? Check out our Academic Research Insight category. [...]

Manager Sentiment and Stock Returns

By |2019-02-04T11:43:16-04:00February 4th, 2019|Basilico and Johnsen, Academic Research Insight|

Manager Sentiment and Stock Returns Fuwei Jiang, Joshua Lee, Xiumin Martin, Guofu Zhou Journal of Financial Economics, forthcoming A version of this paper can be found here Want to read our summaries of academic finance papers? [...]

Compound Your Knowledge: Episode 3–Factor Failure, China, EBITDA

By |2019-02-11T13:29:00-04:00February 1st, 2019|Compound Your Knowledge, Research Insights, Factor Investing, Media|

In today's video, we examine three posts. First, we examine Larry Swedroe's rebuttal to the "failure" of factor investing. Second, we examine a paper examining the performance of the Size and Value factors in China. [...]

Size and Value in China

By |2019-01-28T00:05:53-04:00January 31st, 2019|Research Insights, Guest Posts, Academic Research Insight, Value Investing Research, Size Investing Research|

Size and Value in China Jianan Liu, Rob Stambaugh, and Yu YuanJournal of Financial EconomicsA version of this paper can be found here What are the research questions? China represents the world's second largest stock market [...]

EBITDA, EBITDA, EBITDA…that’s all, folks!

By |2019-02-06T16:00:32-04:00January 29th, 2019|Research Insights, Value Investing Research|

Value investing practitioners and academics have long studied the enterprise multiple effect, including my own business partners, Jack and Wes. The literature reveals that Enterprise Multiples, defined as total enterprise value of the firm divided [...]

“The Failure of Factor Investing was Predictable”

By |2019-02-04T13:02:58-04:00January 28th, 2019|Research Insights, Factor Investing, Larry Swedroe|

In a recent ETF column, Allan Roth listed five investment lessons. While I agreed with much of what he wrote, one claim—factor investing has “failed miserably”— called for examination of the facts. But first, a [...]

Compound Your Knowledge: Episode 2–ESOPs, Factors, Incentives

By |2019-01-25T11:51:22-04:00January 25th, 2019|Compound Your Knowledge, Research Insights, Factor Investing, Media, 1042 QRP Solutions|

In today's video, we examine three posts. First, we examine ESOPs and 1042 QRP (qualified replacement property) with Doug Pugliese. Second, we examine a guest post by Nicolas Rabener examining Value, Momentum and Carry over [...]

Value, Momentum & Carry Across Asset Classes

By |2019-01-24T16:25:43-04:00January 25th, 2019|Factor Investing, Value Investing Research, Momentum Investing Research|

There is a 72% probability of the San Franciso Bay Area getting hit by at least one earthquake of a magnitude of 6.7 or stronger between today and 2043 according to the United States Geological Survey, [...]

1042 QRP: How to Finance a Seller Note

By |2019-01-22T15:29:53-04:00January 23rd, 2019|Research Insights, 1042 QRP Solutions, Tax Efficient Investing|

Employee Stock Ownership Plans (“ESOP”) create unique opportunities for business owners and their employee-participants to build wealth through their companies. To foster broader adoption of ESOPs, Congress instituted a number of attractive tax advantages benefitting [...]

Rankings and Risk-Taking in the Finance Industry

By |2019-01-22T13:17:41-04:00January 22nd, 2019|Basilico and Johnsen, Academic Research Insight|

Rankings and Risk-Taking in the Finance Industry Michael Kirchler, Florian Lindner, and Utz WeitzelThe Journal of Finance, Fall 2018A version of this paper can be found hereWant to read our summaries of academic finance papers? Check [...]

Buyback Blackout Periods Do Not Negatively Impact Market Performance

By |2019-01-17T09:46:37-04:00January 18th, 2019|Research Insights, Factor Investing|

The October 2018 market correction where the S&P 500® Index fell by 7%, its worst October since 2008,[ref]Bloomberg Finance L.P., as of 10/31/2018.[/ref] left investors searching for a culprit. Some of the usual suspects were [...]

Compound Your Knowledge: Episode 1

By |2019-01-18T11:11:12-04:00January 18th, 2019|Compound Your Knowledge, Research Insights, Podcasts and Video, Media|

Welcome to the newly re-titled weekly video, Compound Your Knowledge. In today's video, we examine three posts. First, we examine a simple analysis of 2018 Factor portfolio returns. Second, we examine a guest post by [...]

Equity investing is Riskier than You Probably Expected

By |2019-01-18T11:56:43-04:00January 14th, 2019|Research Insights, Basilico and Johnsen, Academic Research Insight|

Volatility Lessons Eugene F. Fama and Kenneth R. French Financial Analysts Journal A version of this paper can be found here Want to read our summaries of academic finance papers? Check out our Academic Research Insight [...]

Herding and Mutual Fund Performance

By |2019-03-18T14:56:26-04:00January 7th, 2019|Basilico and Johnsen, Academic Research Insight|

Does Herding Behavior Reveal Skill? An Analysis of Mutual Fund Performance Hao Jiang and Michela VerardoThe Journal of Finance, Fall 2018A version of this paper can be found hereWant to read our summaries of academic finance [...]

Why and How Investors use ESG Information

By |2019-01-02T14:15:10-04:00January 2nd, 2019|Research Insights, Basilico and Johnsen, Academic Research Insight|

Why and How Investors Use ESG Information: Evidence from a Global Survey Amir Amel-Zadeh and George Serafeim Financial Analysts Journal A version of this paper can be found here Want to read our summaries of academic [...]

Discipline: A Necessary Condition for Successful Investing

By |2018-12-31T11:41:58-04:00December 31st, 2018|Research Insights, Larry Swedroe, Guest Posts, Behavioral Finance|

A good friend, Sherman Doll, related the following story. Sherman has been a two-line sport kite flier for years. While not a pro, he has learned a few tricks from observing the flying behavior of [...]

Warren Buffett is Wrong About Options (Except)

By |2018-12-28T14:34:33-04:00December 28th, 2018|Research Insights, Guest Posts, Tactical Asset Allocation Research|

Warren Buffett sold long-dated, deep out of the money puts in the years leading up to the financial crisis. In his 2008 Annual Letter to Shareholders, he explained: I believe each contract we own was [...]

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