Professor Money Bear

Tag: FACTOR INVESTING

  • A Rough Quarter-to-Date for Equities Brings Forth Higher Expected Returns

    (As of Nov. 6, 2023) October 2023 was a rough month for investment returns, with asset class returns in these ranges (as implemented via Dimensional Funds Advisors’ mutual funds and ETFs):             U.S. Large Company stocks:                               – 1.6% to -4.2%, approximately U.S. Small Company stocks:                               – 4.8% to -6.5%, approximately             Foreign Developed Markets Small…

  • 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…