Long-Short Investing Might Shorten Your Investment Lifespan
Over the past several decades, academics have identified numerous variables that seem to predict future expected returns. This has led to a proliferation of so-called [...]
Calling All Veterans Interested in Finance: How Can we Help?
Today is the 241st birthday of the Marines, which is celebrated by all Marines around the world. Tomorrow is Veteran's Day. A great time of [...]
Earth to Passive Investors: Lunch is Never Free.
Imagine the following scenario: A strategy that outperforms everything. An ability to scale the strategy at no costs. A beating drum highlighting the infallible logic [...]
DIY Asset Allocation Weights: November 2016
Do-It-Yourself tactical asset allocation weights are posted. Create a free account here if you want to access the site directly. Sign in here if you already have a [...]
Value Investing using Enterprise Multiples — Is the Premium Due to Risk and/or Mispricing?
At Alpha Architect, we are big fans of Value investing (and Momentum). In the past, Wes and I examined which valuation measure had the largest spread [...]
The Rebalance Bonus for Value and Momentum Porfolios
A sophisticated DFA-focused advisor asked us to conduct some research on the following question: Are there additional portfolio diversification benefits to combining concentrated portfolios of value and [...]
Book Review — Common Stocks and Common Sense
Investing can perhaps be best learned through a combination of applied practice and continuous study. While there is no substitute for real-world experience and the [...]
How to Turn an Engineer into a Quantitative Investor
We receive multiple requests from readers looking to break into the finance industry. Quite often the reader is currently working in a traditional engineering job [...]
Reflexivity and the Feedback Effect in Financial Markets
Eugene Fama's Efficient Market Hypothesis argues that because stock prices follow a "random walk," future price behavior cannot be predicted. In his seminal paper, "Random Walks [...]
Evidence-Based Nutrition
Evidence matters. Consider the history of evidence about the universe. In the days of Ptolemy in 100 AD, a "geocentric" model described the universe, in [...]
How to Measure Momentum?
Since we've released our new book, Quantitative Momentum, we've received a handful of basic questions related to momentum--specifically as it relates to stock selection. To [...]
What is the best “Risk-Off” Asset for Trend-Followers?
So you're a trend-follower. Great. But here is a question: What do you invest in when your rules suggest "risk off?" Many investors suggest low [...]
Digging Deeper into Closed End Fund Investment Opportunities
A couple of weeks ago, I received Franklin Templeton Investments' letter to shareholders of Franklin Limited Duration Trust (ticker FTF) imploring us to not let "self-serving" Saba [...]
Value Investing Got Crushed During the Internet Bubble — Here’s Why…
The dot-com bubble of the late 90s was a wild time in the stock market. Internet stocks were trading through the roof, tech IPOs were [...]
Want to Learn Way Too Much About Stock Market Factors? Read This Paper.
During the past few decades, newly discovered stock anomalies have been embarrassing existing factor models, such as the Fama-French 3-factor. As many readers know, each [...]
Quantitative Momentum: A Guide to Momentum-Based Stock Selection
The long wait is over. Our newest book--Quantitative Momentum--is finally here. After 2 years of research review, results replication, reverse engineering, internal idea generation, writing, editing, [...]
DIY Asset Allocation Weights: October 2016
Do-It-Yourself tactical asset allocation weights are posted. Create a free account here if you want to access the site directly. Sign in here if you already have a [...]
Active, Irregular Day in the Stock Market–What Else is New?
A news article from September 29, 2016 -- 100 years ago, today. The lead article of the Evening Star highlights that there was an "active, irregular day [...]
Introducing the Global Earnings Announcement Premium
How do stock prices react to earnings announcements? Sometimes prices go up, and sometimes they go down. But here is a potentially more interesting question: What is [...]
Podcast: Even God Would Get Fired as an Active Investor (Wes)
Here is a link to our podcast on the Meb Faber Podcast What if you had perfect foresight and knew ahead of time which stocks [...]