Insights

Grading the Forecasters

Larry Swedroe on data that reveals the disappointing accuracy of market forecasts. Larry Swedroe, Director of Research, The BAM Alliance The financial media tends to focus much of its attention on stock market forecasts by so-called gurus. They do so because they know that it gets the investing public’s attention. Investors must believe such forecasts…

The Antidote To Stock Market Hysteria

Market forecasters capitalize on our desire to know the unknowable. Tim Maurer, Director of Personal Finance, The BAM Alliance Just for fun, Google the words “market pullback.” There are over 2.2 million results–most of them market predictions–and the first page of results is dominated by calls for an imminent market reversal that the simple desk…

Portfolio Pumping Continues

New research shows that “portfolio pumping” still occurs at mutual fund families. Larry Swedroe, Director of Research, The BAM Alliance Portfolio pumping—also known as “painting the tape” or “leaning for the tape”—is a market-manipulative strategy that mutual fund and hedge fund managers use to mark up their holdings at the end of the quarter by…

Hedge Funds Again Miss the Mark

Larry Swedroe unpacks the data in his latest review of hedge funds’ lagging performance. Larry Swedroe, Director of Research, The BAM Alliance Hedge funds entered 2017 coming off their eighth-straight year of trailing U.S. stocks (as measured by the S&P 500 Index) by significant margins. And for the 10-year period ending 2016, one that included…

Take More Risk in Life And Less in Investing

How will you spend your tolerance for risk? Tim Maurer, Director of Personal Finance, The BAM Alliance “I just really wish I’d taken more risk in my investment portfolio,” said no one–ever–on their deathbed. That may seem like an odd observation, unless you consider the fact that I had the privilege of spending a couple…

Estate Planning Includes Preparing Your Heirs

Larry Swedroe explains how to build a successful family wealth transfer plan. Larry Swedroe, Director of Research, The BAM Alliance Prepare your assets for transition to your heirs, but also prepare your heirs to receive your assets. Larry Swedroe explains why the success of an estate plan may depend on preparing families for the transfer…

The Perils of Owning Individual Stocks

Hope vs. wisdom and investors’ failure to diversify. Larry Swedroe, Director of Research, The BAM Alliance Individual stock ownership offers both the hope of great returns (finding the next Google, for instance) and the potential for disastrous results (ending up with the next Lehman). Because investors are not compensated for taking the risk that their…

Persistent Returns for Active Managers Remain Elusive

Outperforming active funds rarely manage to repeat their success. Larry Swedroe, Director of Research, The BAM Alliance Since 2002, S&P Dow Jones Indices has published its biannual S&P Indices Versus Active (SPIVA) scorecards, which compare the performance of actively managed equity funds to their appropriate index benchmarks. Its midyear reports focus on the question of…

Europe’s SPIVA Results Are Nothing New

Larry Swedroe breaks down Europe’s SPIVA results to show active strategies aren’t likely to outperform. Larry Swedroe, Director of Research, The BAM Alliance Earlier this week, I provided some highlights of from the S&P Dow Jones Indices Versus Active (SPIVA) 2016 U.S. Scorecard. Today we’ll look at the SPIVA Europe Scorecard, which compares the performance of actively…

Hedge Funds Trail Equities

Larry Swedroe reviews how hedge funds have performed through the first quarter of 2017. Larry Swedroe, Director of Research, The BAM Alliance Hedge funds entered 2017 coming off their eighth-straight year of trailing U.S. stocks (as measured by the S&P 500 Index) by significant margins. And for the 10-year period ending 2016—one that included the…

SPIVA Survey Continues Passive Winning Streak

Larry Swedroe breaks down SPIVA Scorecard to show failure of active management’s ability to generate alpha. Larry Swedroe, Director of Research, The BAM Alliance 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 funds to their appropriate index benchmarks. For the…

Two New Books About Finance for the Average Investor

Larry Swedroe recommends two new books for the average investor. Larry Swedroe, Director of Research, The BAM Alliance There are few things I enjoy as much as reading the latest information that’s shared in the world of finance. Recently, I read two new books that I recommend to those who share my love of financial…

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