In this episode, we speak with O’Shaughnessy Asset Management’s Ehren Stanhope about his excellent research paper “The Great Inflation, Factors, and Stock Returns.” We discuss the history of inflation and…
Tag: Investment Factors
A Detailed Look at the Quality Factor
By Jack Forehand, CFA There is probably no investing factor that makes more sense to your average investor than quality. We all want to own great companies – think Apple, Microsoft,…
If You Think You're Diversified, Think Again
Diverging performance doesn’t necessarily signal true diversity, says Nomura quant strategist Joseph Mezrich. This according to a recent article in Barron’s. While selecting stock groups based on different characteristics should…
Factor Portfolio Returns and Implementation Costs
A recent Advisor Perspectives article by BAM Alliance director of research Larry Swedroe discusses the degree to which implementation costs may affect factor premiums. Swedroe first offers a checklist of…
Cost of Smart Beta Leads to Distorted Investor Expectations
An article in CFA Institute reports that, although academic research has touted the benefits of “smart-beta,” investing, this research “largely ignores transaction costs that reduce returns significantly.” The article offers…
Swedroe on What Makes Factors Last
In an article on ETF.com, BAM Alliance research director Larry Swedroe discussed issues related to factor investing, the potential problems with research around it, and the criteria he believes must…
Study Raises Questions About Factor Significance
A new study has found that most of the market anomalies academics have identified are not statistically significant, says a recent Wall Street Journal article. After analyzing 447 anomalies (the…