Category: Asset Class Expected Returns
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The Major Benefits of Utilizing Factor-Based Investing in Investment Portfolios
In several previous blog posts, I discussed several “factors” – characteristics of stocks – that can be utilized in portfolio construction to seek to improve equity (stock) returns over long periods of time (10-20 years) with a high degree of probability. Over the next 20 years, exposure to these factors brings with it a very…
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Exploring the Profitability Factor
In previous blog posts I previewed several “factors” – characteristics of stocks – that can be utilized in portfolio construction to seek to improve equity (stock) returns over long periods of time (10-20 years) with a high degree of probability. In the April and May editions I explored the “size factor” – also known as…
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Exploring the Price (Value) Factor
What is the “Price” (Value) Factor? Simply stated, a diversified basket of “value” stocks (i.e., stocks that possess a low relative valuation, as determined by price-earnings, price-book, price-sales, and/or or price-to-free cash flow ratios) possesses a very high probability of outperforming a diversified basket of “growth” stocks (i.e., stocks that possess high relative valuations, by…
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Exploring the Size (Small Cap) Factor
In a previous blog post, I previewed several “factors” – characteristics of stocks – that can be utilized in portfolio construction to seek to improve equity (stock) returns over long periods of time (10-20 years) with a high degree of probability. This month I explore the “size factor” – also known as the small cap…
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Cryptocurrencies: Signed Pieces of Paper in Search of the “Greater Fool”
Do cryptocurrencies possess any real value? Years from now, this fad will pass.
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Why would some investors want the stock market to go down?
by Ron A. Rhoades, JD, CFP(r) The U.S. stock market was near its all-time highs in late 2021 and many analysts suggested that it was overvalued significantly. So, the above question seems odd doesn’t it? Or is it? Investors are optimistic. They put money at risk in hopes it will go up in value –…