Tactical Asset Allocation Research

Implications of Regime-Shifting Stock-Bond Correlation

By |September 8th, 2023|Research Insights, Larry Swedroe, 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.

Does International Diversification Work?

By |February 28th, 2023|Research Insights, Factor Investing, Basilico and Johnsen, Academic Research Insight, Tactical Asset Allocation Research|

In this article, the authors examine the research on the benefits of international diversification. Some argue that because equity markets generally crash simultaneously, there are no benefits to having equity diversification. The evidence from this paper rejects this hypothesis.

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