One of the great virtues of working with the BAM Alliance getting our clients access to their fixed income desk, which searches for maximum tax equivalent yield for each client without the markups that brokerages charge. In-state or out-of-state municipal bonds? Fixed Income Advisor Steve Wiechel explains how the fixed income desk determines which is…
Larry Swedroe explores whether bitcoin is a worthwhile investment or is still purely speculative. As the director of research at Buckingham Strategic Wealth and The BAM Alliance, it’s not surprising that I’ve been getting lots of calls lately about investing in bitcoin. Just seven years ago, bitcoins were trading at about 10 cents. Four years…
Larry Swedroe tackles the evidence showing that hiring recently outperforming managers and firing recently underperforming ones remains a losing strategy.Does Past Performance Matter?
Larry Swedroe tackles the evidence showing that hiring recently outperforming managers and firing recently underperforming ones remains a losing strategy.Does Past Performance Matter?
Larry Swedroe tackles the evidence showing that hiring recently outperforming managers and firing recently underperforming ones remains a losing strategy. Despite most investors’ belief that past performance matters, a large body of academic research has found little-to-no evidence that more managers than would be randomly expected persistently outperform the market on a risk-adjusted basis. While…
Larry Swedroe tackles a recent study that uses Bollinger Bands to explore the link between popularity and profitability. Financial researchers have uncovered many relationships between investment factors and security returns. For investors, an important question is whether these relationships will continue after the research on them has been published. Said another way, should we expect…
Worried about equity valuations? Trying to time the market to sit out a correction? Take Larry Swedroe’s short quiz. We have data for 91 calendar years (or 1,092 months) of U.S. investment returns over the period 1927 through 2016. The average monthly return to the S&P 500 has been 0.95%, and the average quarterly return…
Larry Swedroe takes a look at U.S. and international equity valuations, and what the differences between them mean for investors. With the Shiller CAPE 10 above 30 (to be precise, 30.7 as I write this), it’s likely you have seen an interview or read an article in which some “guru” claims the market is on…
Can we better save for retirement by acting as if that “someday” is today? While on vacation recently in the Abaco Islands, on the outer rim of the Bahamas, I found myself on an important mission: taking the golf cart to the local market to restock our dwindling supply of the necessary ingredients for piña…
BAM ALLIANCE member Stuart Vick Smith offers five tips for helping to teach your kids about money. As parents, we continually struggle to pass knowledge on to our children. Unfortunately, sometimes financial knowledge is left off the list or lost in translation. To prevent that happening, consider the following five tips to help teach your…
Larry Swedroe on Eugene Fama and Kenneth French’s new test of their five-factor model. The history of asset pricing models is one of evolution. As anomalies are discovered, our knowledge advances and new models are developed. Building on the work of Harry Markowitz, the trio of John Lintner, William Sharpe and Jack Treynor are generally…
Put money into its rightful place. Tim Maurer on ways to avoid letting money destroy your relationships. Money destroys relationships because people can’t compete with money. Money, after all, doesn’t disappoint you, or express disappointment with you. It’s not that money is inherently bad or evil, but it’s not inherently good or righteous either. Money…
One of the big anomalies in finance is that, given the overwhelming evidence showing active management is a loser’s game, so many investors still choose it. Larry Swedroe offers four explanations for this phenomenon. The other day, one of my firm’s wealth advisors called me to relate his conversation with a prospective client who had…
As fallout from the Equifax data breach continues, Tim Maurer covers the steps you can take now to help ensure you’re protected from the possible negative outcomes of this (or the inevitable next) mass identity theft. What happens when one of the three primary entities designed to safeguard our financial identity to the outside world…
Tim Maurer in Forbes on parent student loans. Parents have sacrificed their financial futures on the altar of their children’s education. Fueled by easy federal money and self-interested colleges, the result is a student loan crisis that appears already to be eclipsing the catastrophic proportions of mortgage indebtedness leading up to the financial collapse of 2008….