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Using Time-Series Momentum to Intentionally Miss the Best Months. Yes, Really.
The buy-and-hold crowd, including many mutual fund companies and a large cross-section of vocal pundits, like to talk about how missing the N best days/months in the market causes a serious impairment to long-term investor returns …
Keep ReadingReSolve and S&P Dow Jones Debut Industry-Leading Risk Parity Index
ReSolve’s primary mission has always been to educate investors on the importance of thoughtful diversification. And judging by the fund flows report, there’s no more pressing time to do so than right now. We hope this new index is a useful tool in keeping your clients from …
Keep ReadingReport: Are We Near the End of the Diversification Pain Train?
The experience of the past decade has led investors to conclude that international investing is a mug’s game, diversification is dead, and they should throw all their savings into US stocks. We believe these conclusions are
Keep ReadingReSolve Talks Cognitive Biases and Global Diversification with S&P Dow Jones Indices
Recently, ReSolve’s Founders had the opportunity to sit down for a conversation with Shaun Wurzbach, Global Head of Financial Advisor Channel for S&P Dow Jones Indices. In this short 12-minute video, we cover a lot of ground: cognitive biases, regulatory change, the value of …
Keep ReadingReSolve’s 2016 Year End Review, Why Playing the Lottery is a Terrible Investment Strategy
2016 was a year that rewarded passive risk takers and not active risk managers.In fact, the past two years have been characterized by a lack of direction and low returns for most asset classes. While the US and Canadian equity markets may seem like “winners” in …
Keep Reading2-Minute Portfolio or Global Diversification? An Evidence Based Analysis
Yesterday we received a thoughtful inquiry from a client, whose spouse has been following the so-called “2-Minute Portfolio” publicized by vocal advisor critic Rob Carrick at Canada’s The Globe and Mail newspaper. The client was being challenged by his spouse about his …
Keep ReadingAsset Allocation is Not for the Faint of Heart (Long Live Diversification)
We have posted a lot of research on fairly complex asset allocation topics, but I think many readers would be surprised to learn that I am actually highly skeptical about historical market statistics. I don’t think that we can draw any meaningfully precise …
Keep Reading3 Reasons to Ignore Dow 20,000 and Focus on Better Portfolio Outcomes
It is simple to achieve better portfolio outcomes by going global, thinking differently about diversification, and targeting optimal portfolio balance.
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