Tag: size factor
-
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…
-
Will Factor-Based Investment Strategies Outperform Over the Next 10 Years?
A client recently inquired about stock market valuation levels, expected and historical returns. The questions posed (as restated by me, for clarity purposes) were: (1) After the surge in valuations of U.S. technology stocks in the first six months of this year, are there currently “dangers” lurking in the stock market? (2) What are the…
-
Use of Factor Investing in Portfolio Design for Retirees and Accumulators
In previous 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 strong probability…
-
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…
-
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…
-
CAN YOU “BEAT THE MARKET”? (An Introduction to Factor-Based Investing)
Is it possible to “beat the market”? Yes – at least with a high degree of probability – over any given 20-year period of time. Permit me to expound upon this theme, with a brief review of “evidence-based investing.” With the rise of computers in the early 1960’s, researchers as universities began to accumulate financial…