How the major indexes approach the markets.
One of President Donald Trump's campaign promises was to overhaul the US tax code. The administration recently released its tax proposal, and the pundits have been weighing in on how it will affect us all. As Congress continues to debate the latest version of the plan, which passed through the House of Representatives on November 16,
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The relative performance of emerging markets has been unremarkable over the past decade, however meaningful changes have taken place in the fundamental and financial construct of the asset class that are relevant for asset allocators. Most notably, the composition of the index has seen dramatic shifts in sector, country, and stock constituents...
Learn why cost isn’t everything.
In his recent article, Michael Edesess argued that multiple empirical “anomaly” studies and the wide use of regression are ruining finance research. While some of his points are valid, his conclusion that the entire set of academic studies should be discarded goes too far.
“There They Go Again . . . Again” of July 26 has generated the most response in the 28 years I’ve been writing memos, with comments coming from Oaktree clients, other readers, the print media and TV. I also understand my comments regarding digital currencies have been the subject of extensive – and critical – comments on social media, but my primitiveness in this regard has kept me from seeing them. The responses and the time that has elapsed have given me the opportunity to listen, learn and think. Thus I’ve decided to share some of those reflections here.
I’m in the process of writing another book, going into great depth regarding one of the most important things discussed in my book The Most Important Thing: cycles, their causes, and what to do about them. It will be out next year, but this memo will give you a preview regarding one of the most important cyclical phenomena.
In a recent article, Larry Swedroe argued that long-term investors should avoid all levered ETFs. He based this conclusion on a 10-year ETF return sample. It turns out that this is an unrepresentative sample for making such a sweeping statement. Other studies, based on longer time periods, come to the opposite conclusion.
Forty years of behavioral science research provides a more realistic framework for viewing investors and markets than does MPT.