Phil DeMuth discusses a possible breakthrough for factor-based investors known as “Profitability”. “Over time, tilts towards value, momentum and profitability have outperformed the market, and due to the diversification benefits, a combined portfolio of these three has provided much higher reward per unit of risk and a significant reduction in extreme risk or losses. Thus, Read more about The Profitability Factor[…]
A very readable article by Beverly Goodman. “If individuals can’t consistently beat the market [they can’t], they should simply strive to be the market. And that’s a fine strategy that’s easily employed by investors at any level of sophistication and assets.” Read the full article >>
Burton Malkiel, the author of the classic A Random Walk Down Wall Street, revisits his advocacy for the Efficient Market Hypothesis (EMH): “The evidence is overwhelming that active equity management is, in the words of Ellis (1998), a ‘loser’s game.’ Switching from security to security accomplishes nothing but to increase transactions costs and harm performance. Thus, Read more about Reflections on the Efficient Market Hypothesis: 30 Years Later[…]
The folks at Vanguard address 7 common myths about index investing. Read the full article >>
An excellent whitepaper from the Vanguard Research Group that “explores both the theory underlying index investing and evidence to support its advantages”. Read the reseach >>
Another excellent article by Steven Thorley demonstrating that passive investing (indexing) is “preferred for most investors” even when markets aren’t efficient. Read the full article >>