Fixed Income Advisor Steve Wiechel explains how the fixed income desk determines which is best for each individual client. In-state or out-of-state municipal bonds? Fixed Income Advisor Steve Wiechel explains how the fixed income desk determines which is best for each individual client. By clicking on any of the links above, you acknowledge that…
Larry Swedroe concludes it’s premature to give up on the value factor, but also that its premium has only been earned by investors disciplined enough to stay the course through sometimes long periods of underperformance. As the director of research for Buckingham Strategic Wealth and The BAM Alliance, I’ve been getting lots of questions about…
Larry Swedroe unpacks the newly released year-end 2017 SPIVA report and its look at active management’s underwhelming performance. Since 2002, S&P Dow Jones Indices has published its S&P Indices Versus Active (SPIVA) scorecards, which compare the performance of actively managed equity mutual funds to their appropriate index benchmarks. The 2017 report includes 15 years of data. Following…
Larry Swedroe explains why active bond fund managers not only fail to outperform, but may also offer investors only the illusion of portfolio diversification. There is a myth that active bond fund managers want and need you to believe. It goes something like this: “Sure, active stock picking isn’t likely to work, but in fixed…
The latest SPIVA scorecard is out, and Larry Swedroe unpacks results that show persistence in performance beyond the randomly expected remains out of reach for active managers. Since 2002, S&P Dow Jones Indices has published its biannual Indices Versus Active (SPIVA) reports, which compare the performance of actively managed equity funds to their appropriate index benchmarks….
Larry Swedroe resumes his list with 2017’s lessons four through seven. Earlier this week, we began discussing what the markets taught us in 2017 about prudent investment strategies. We tackled lessons one through three then, so today we’ll resume with lessons four through seven. Lesson 4: Don’t make the mistake of recency. Last year’s winners are…
Larry Swedroe unpacks lessons one through three from 2017. Every year, the markets provide us with lessons on the prudent investment strategy. Many times, markets offer investors remedial courses, covering lessons it taught in previous years. That’s why one of my favorite sayings is that there’s nothing new in investing—only investment history you don’t yet…
Larry Swedroe concludes his list with 2017’s lessons eight through 10. Every year, the markets offer lessons on the prudent investment strategy. So far, we’ve covered what they taught us last year in lessons one through three and four through seven. Today, we’ll finish off 2017’s list with lessons eight through 10. Lesson 8: Hedge funds are not…
Larry Swedroe explores how awarding star ratings and crowning “category kings” can influence investor (and manager) decisions. To date, an overwhelming body of academic research (including on active share as a predictor) has demonstrated that a mutual fund’s past performance not only fails to guarantee its future performance (as the required SEC disclaimer states), but…
Can we better save for retirement by acting as if that “someday” is today? While on vacation recently in the Abaco Islands, on the outer rim of the Bahamas, I found myself on an important mission: taking the golf cart to the local market to restock our dwindling supply of the necessary ingredients for piña…
Larry Swedroe takes a look at the data and builds his case for why investors should continue to expect a value premium going forward. Recency bias—the tendency to give too much weight to recent experience and ignore long-term historical evidence—underlies many of the mistakes commonly made by investors. It’s particularly dangerous because it causes investors…
Larry Swedroe tackles new evidence showing that hiring recently outperforming managers and firing recently underperforming ones remains a losing strategy. Despite most investors’ belief that past performance matters, a large body of academic research has found little-to-no evidence that more managers than would be randomly expected persistently outperform the market on a risk-adjusted basis. While…
Mutual fund rating systems really only do a great job of “predicting” the past. Larry Swedroe reviews the research. The holy grail for mutual fund investors is the ability to identify in advance which of the very few active mutual funds will outperform in the future. To date, an overwhelming body of academic research has…
Will disciplined value investing be rewarded long term? Larry Swedroe on the evidence, and current stock valuations. Having a well-thought-out investment plan is the necessary condition for successful investing. However, it’s not sufficient. The sufficient condition is having the discipline to stay the course during the virtually inevitable periods when a strategy underperforms. That, of…
Larry Swedroe reviews results from the new mid-year 2017 SPIVA scorecard. Since 2002, S&P Dow Jones Indices has published its S&P Indices Versus Active (SPIVA) scorecards, which compare the performance of actively managed equity mutual funds to their appropriate index benchmarks. The 2017 midyear scorecard includes 15 years of data. Equity Following are some of the highlights…
