In this 6-minute video Adam Butler introduces a simple but novel innovation for modeling equity market valuations. There are reasons to believe average valuations should rise through time in response to changes in market structure. We discuss the conditions that …
The investment industry has investors convinced that the only path to better performance is through stock selection. As a result, most investors approach the challenges of portfolio construction exactly backward and miss out on the most important opportunities to …
Risk Parity is having a moment.For us, the fuse was lit in August 2016 when Bank of America Merrill Lynch released a research note suggesting that Risk Parity investment strategies represented a substantial source of systemic risk in global markets…
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 …
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 …
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 …
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 …
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
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 …
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 …
ReSolve Asset Management Blog is an investment research forum, opinion pieces, and educational material from the team at ReSolve Asset Management. Our views are driven by evidence based finance, with a special focus on asset allocation, factors and smart beta, retirement and endowment strategies, and quantitative methods.
