Smart beta, indexing, Fama/French, margin of safety, Graham (deep) value, growth, momentum, GARP. Each of these terms represent very different styles of investing, but they all have one thing in common: they are all predicated on the fact that certain factors have, and will continue to, drive stock returns. · Smart Beta: fundamental-weighting, low volatility…
Posts Tagged: long term investing
Portfolio Patriotism, and Why You Should Avoid It
The U.S. equity market is expensive. The median stock is about as pricey as it’s been in 50 years, and valuations are all clustered: there are far fewer bargains than in years past. I am not an index investor, so I generally pay less attention to market-level valuation measures like the Shiller P/E or Tobin’s…
Forget Passive vs. Active-Here’s How To Evaluate Any Investment Strategy
Burton Malkiel has a new piece up on Wealthfront’s website calling smart beta strategies into question. It’s a very interesting and hot debate at the moment, and Malkiel’s perspective is worth a read—many of his points are important to consider. The problem with this debate is that it is impossible to evaluate “smart…
Millennials Are Screwing Up Their Investments
Young people are going about investing all wrong. The most basic (and important) decision you make as an investor is your allocation between major asset classes—primarily stocks, bonds, and cash. Here is how millennials’ portfolios look in 2014, according to a recent research report from UBS. This allocation screams caution, worry, and distrust of the stock…
Millennial Money Book
