We turn now to the final and arguably most significant factor in your evidence-based investment strategy: the human factor. In short, your own impulsive reactions ...
As Eugene Fama has explained, “You should use market data to understand markets better, not to say this or that hypothesis is literally true or false. No model is ever strictly true. The real criterion should be ...
As with any risky venture, there are no guarantees that you’ll earn the returns you’re aiming for, or even recover your stake. This leads us to why we so strongly favor evidence-based investing. So what does evidence-based investing entail?
In part one, we discussed why lump-sum investing is generally expected to generate the highest returns over time. In markets that have risen more, and ...
With all the excitement over stocks and bonds, and their ups and downs in headline news, there is a key concept often overlooked: Market returns are ...
Like a bucking bronco, near-term market returns are characterized more by periods of wild volatility than by a steady-as-she-goes trot. Diversification helps ...
Before we even have words to describe it, most of us learn about life’s general risks when we tumble into the coffee table or reach for that pretty cat’s tail. Investment risks aren’t as straightforward.
Among your most important financial friends is diversification. After all, what other single action can you take to simultaneously dampen your exposure ...