Advanced Investing
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Asset Allocation in Plain English

Have you ever noticed? What’s clear to an “insider” isn’t always so obvious to everyone else. Doctors, lawyers, engineers … investment advisors. I’m afraid we’ve all been guilty of tossing around too many technical terms without defining them first.

Advanced Investing
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Fundamental Indexing

Rob Arnott, the founder of Research Affiliates, was on the Masters in Business podcast a while back. He said something that, to me, was fascinating. He criticized Dimensional Fund Advisors for starting with market cap weights to build their products.

Advanced Investing
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Figuring Out Factor Investing

Everyone likes to believe they’re smart consumers. That’s probably why the term “smart beta,” also known as “factor investing,” is so hot right now. “Stupid beta” probably wouldn’t attract many takers. So what is factor investing, and are you smart to use it? That’s what today’s post and related video are all about.

Market Research
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When GICs beat bonds

The fixed income component of the Dimensional Fund Advisors global portfolios has been low to-date in 2018, and also for the past 12 months. It is down 0.51% year-to-date at July 2018, and down 0.27% for the 12 months ending July 2018.

Market Research
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All time highs are normal

We may have just witnessed the longest bull market in US market history. There is some disagreement on the definition of a bull market, but no matter how it is defined it is clear that the S&P 500 has been rising without too much interruption for a long time.

Advanced Investing
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Don’t cry over underperforming US value stocks

Value stocks in the US have not fared well for the last decade. The value premium, or the performance difference between value and growth stocks, has been about 3.5% in the US going back to 1928. More recently the value premium has been negative for 7 out of the past 10 years in the US. We are currently living through 1 of 13 10-year periods going back to 1928 where value has underperformed growth.