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Get Comfortable with Being Uncomfortable, Part 2: Maximum Diversification
In Part 1 of this series, we addressed how valuations on stocks and bonds remain extremely lofty. As a result, it is unrealistic to expect the portfolios that investors have grown comfortable with over the past few decades to produce the returns investors need to achieve …
Keep ReadingProspect Theory, Bias, and Chalk: Our 2017 March Madness Wrap
Investing is different because we have the opportunity to apply strategies repeatedly over a long period of time. While the outcome of any short-term investment sub-period may have characteristics of randomness, over many repetitions patterns emerge. This …
Keep ReadingGet Comfortable with Being Uncomfortable, Part 1: Valuations
When most investors think about “risk reduction” their minds immediately conjure volatility and losses. However, as advisors, we should consider a broader definition of risk that connects more directly to how clients feel about their investments. Specifically, advisors should …
Keep ReadingFrom the Office of Weak Sauce Management: Your Elite 8 Scoring Update
As we mentioned after the Round 2 update, our scoring rules this year did absolutely nothing to discourage most of you from submitting chalky brackets. And while we’ll do a deep dive after all the dancing is done, right now there’s a simple piece of evidence that …
Keep ReadingMulti Factor Indexes: More Bang for Your Buck
Many advisors are unsure whether introducing factor-tilt ‘smart beta’ strategies into portfolios will improve client outcomes. In fact, some factor tilt portfolios appear to provide the equivalent of levered exposures to a diverse set of alternative risk premia. This is …
Keep ReadingA Skeptic’s Guide to Factor Investing
There is a great deal of evidence supporting the existence of alternative sources of excess returns, such as value, momentum and low risk. Factor investing is real; In fact, these factors are observed in virtually every market and asset class around the world. And they have …
Keep ReadingReSolve 2017 March Madness Bracket Challenge: Round 2 Update
Because despite lacking any major early upsets, there are a handful of mid-seeded teams that made moves in the second round. Specifically, Xavier, Wisconsin, and Michigan are all on high-point underdog runs, having disposed of #3 Florida State, #1 Villanova, and …
Keep ReadingPSA : Your NCAA March Madness Rules are Garbage. Do This Instead.
On the heels of last year’s fun and successful March Madness Bracket Challenge (“WHERE SKILL PREVAILS!”), we are happy to invite any and all to 2017’s version. Feel free to read the post for this year’s rules, but bear in mind this year’s pool is …
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