Larry Swedroe on how the risk of private equity doesn’t always equal higher returns. The term “private equity” is used to describe various types (e.g., buyout funds and venture capital funds) of privately placed (nonpublicly traded) investments. Even though buyout (BO) funds and venture capital (VC) funds have similar organizational and compensation structures, they are…
Larry Swedroe explores the research on when emerging markets outperform. Earlier this week, we looked at emerging markets and why many investors stick to domestic stocks due to two biases: home country and recency, despite a compelling case for emerging market investing. To more fully understand the case for global diversification, I’ll resume the discussion with an…
What happens if you don’t have an estate plan? Joe Delaney shares two scenarios to show the value of planning ahead. There are no crystal balls to tell us when our time on earth will be up, but some people do experience close calls. These instances are jolting reminders that while our time is limited,…
Market forecasters capitalize on our desire to know the unknowable. 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 calendar has already proven false. However, despite their worthlessness,…
Larry Swedroe reviews the evidence on how political biases can affect your investing. “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light,…
Mutual Fund families allocate IPOs to new funds to enhance early performance and attract investors. Despite the evidence showing that past performance is a poor predictor of future mutual fund performance, mutual fund families know that a majority of investors believe this is not the case. Mutual fund families exploit that lack of knowledge, not…
Turns out the “smart money” often isn’t. Larry Swedroe on who, exactly, exploits market anomalies. Institutional investors are generally considered “smart money” that exploits the behavioral biases of “dumb” retail money. However, there have been some holes poked in that idea recently. For instance, Roger Edelen, Ozgur Ince and Gregory Kadlec, authors of the study…
Turns out the “smart money” often isn’t. Larry Swedroe on who, exactly, exploits market anomalies. Institutional investors are generally considered “smart money” that exploits the behavioral biases of “dumb” retail money. However, there have been some holes poked in that idea recently. For instance, Roger Edelen, Ozgur Ince and Gregory Kadlec, authors of the study…
Larry Swedroe compiles his list of financial predictions to watch for the year. Every year, I like to keep track of the predictions “gurus” and other market observers make for the upcoming year, specifically the ones they say are “sure things.” It seems like no one in the financial media holds them accountable (which is…
For some, fiduciary is just a headline. For us, “It’s who we are.” The word fiduciary has been in the news a lot of late, from Wall Street to Washington, but it’s a word that has always been part of our daily dialogue. Advisors who act as fiduciaries, as we do, are legally required to put the…
Diseconomies of scale and their impact on active manager performance. There is a large body of overwhelming evidence that past performance is at best a poor predictor of active managers’ future performance. That is why the SEC requires that common and familiar disclaimer. There are many explanations for the difficulty that active managers face in…
Larry Swedroe unpacks research on the impact that short-selling a firm’s stock can have on that company’s bond returns.
Larry Swedroe unpacks research on the impact that short-selling a firm’s stock can have on that company’s bond returns.
STL Today columnist Jim Gallagher enlists Larry Swedroe to discuss some reasons why investors shouldn’t trust market forecasts.
Manisha Thakor talks about joyful work and finances with Gur Tsabar.