What Is the Future of the 60/40 Portfolio?
The traditional portfolio balance of stocks and bonds—known as the 60/40 mix—is “at risk of becoming obsolete as some investors predict years of underperformance by both its component parts.” This…
The Size Effect Never Existed
While some young academics are trying to increase the list of investment factors, “grizzled veterans are concluding that the small-company effect does not, after all, exist.” This according to a…
The Role of Expectations in Investing
By Jack Forehand, CFA (@practicalquant) I am not one to go out to fancy restaurants very often. Most of the time, I tend to prefer cooking at home to eating…
Why the S&P 500 is an Active Portfolio, and Other Observations on the Stages of Active Management (Ep. 44)
Active management deserves all the criticism it gets. After all, over 80% of equity managers underperform their benchmarks over the long-term and active managers charge vastly higher fees compared to…
How the Richest Americans Made Their Wealth
A recent MarketWatch article by contributor Mark Hulbert argues that the wealthiest Americans are not the source of great investment tips, but rather earned their fortunes either by starting businesses…
Insider Trading Intense with No Regulators in Sight
“There’s no end to the parade of corporate transactions preceded by trading underlying their selective disclosure,” says a recent Bloomberg article, “And there’s no sign regulators see the possibility of…
Overlooked Fact About Buffett’s Fortune
A recent CNBC article offers an excerpt from Morgan Housel’s new book, “The Psychology of Money: Timeless Lessons on Wealth, Greed and Happiness” in which he underscores the importance of…
Inflation Could Reach 10%, Says Druckenmiller
In a recent CNBC interview, Investor Stan Druckenmiller says the markets are in a “raging mania” and inflation could hit 5% to 10% in the next four to five years.…