Factor-Based Investing

The yearly paying out of lump sums to reward top talent is such a standard, established practice, questioning it may seem a little quaint. More than three-quarters of U.S. companies use performance incentives of some kind. Yet the fact remains, we don’t really know how well they work. Do they encourage people to work harder and smarter?

A hefty debate is underway in the crypto space about whether Bitcoin is mired in a drawn-out bear market. Proponents of the notoriously volatile token say a bounce could be around the corner after it shed half its value from an all-time high in November. But a few industry metrics suggest a crypto winter is already here, according to market-intelligence firm Glassnode.

IRS criminal investigators see cryptocurrencies and nonfungible tokens as ripe for fraud, including money laundering, market manipulation and tax evasion -- and even celebrities could get caught up in the agency’s probes.

Large hedge funds and private-equity firms may soon have to start reporting steep losses, major redemptions and other extraordinary events in near real-time to the U.S. Securities and Exchange Commission -- a change that the regulator says will help it protect the financial system during meltdowns and wild swings like the meme stock mania that roiled markets a year ago.

Last year, shareholder activists teamed up with environmental and socially-minded investors in record numbers. The most successful campaign was arguably hedge fund Engine No. 1’s push to add three climate-conscious directors to the board of fossil-fuel behemoth Exxon Mobil Corp. Other notable initiatives included investor Dan Loeb’s attempt to break up Royal Dutch Shell Plc and Bluebell Capital Partners’s push for a management shakeup at GlaxoSmithKline Plc.

Four prominent economists are imploring the White House to rethink a critical lever for policymaking that they call “insufficient to deliver the climate targets set in the Paris Agreement and by the Biden administration.”

ICYMI: In this roundup, we’re highlighting the five most popular pieces of content from the previous week.

Here are some rules and skills that are unique to the virtual sales platform. Growing your skills in these areas will make your practice very profitable in the coming years.

Meme stocks, cryptocurrencies, the broader stock market: All have tumbled with astonishing speed this year, and few strategists think the pain will end here.

Bitcoin miners are facing a crucial test in the wake of the token’s 50% plunge from an all-time high. While many mining operations made a handsome profit during Bitcoin’s runup last year, the recent decline could punish those with less efficient operations.

Investors have been taking refuge from the Chinese real estate debt crisis in pockets of the broader Asian credit market, and cite India among opportunities that are relatively insulated from the historic turmoil.

Insights into the economy can be found in surprising places. In a brothel, for instance, how services are priced and who ends up working there can reveal a lot about the state of the business cycle. It also reflects structural changes in our economy and society.

Large asset managers provide model portfolios for many purposes — as options in 401(k) plans, as blueprints for institutional clients and affiliated financial advisors, and as suggestions for unaffiliated investment advisors. These have the “lather, rinse, repeat” conflict of interest.

Oil prices rose on Tuesday following the biggest one-day tumble this year, with traders refocusing on the outlook for energy demand and shaking off broader weakness in financial markets.

The following seven phrases tell you that someone is lying over email, instant messaging, or text.

I offer my top 10 roster of realizable and important financial resolutions to start your year off on the right foot!

Recently one expert asked whether the letters I receive are authentic or perhaps I make them up. I’d like to use this column to address this and ask financial professionals to consider things we often don’t talk about in this industry.

“I’m opposed to financial planning,” said no one ever. Yet most of us avoid financial planning, despite the best efforts of the financial media to extol its virtues.

In today's digital-first world, a marketing funnel is how financial advisors attract ideal prospects, engage clients and COIs, and stimulate referrals.

I don’t buy the narrative that small firms will find it hard to add new clients simply because of larger RIAs. And here's why.

In my work with female clients in transition, some of the most difficult conversations are with those whose lives have been upended by the death of their spouses.

If you transition your practice to the RIA model, it is not a matter of whether you will outsource, but how much.

Surging markets spurred a buying frenzy for everything from stocks and cryptocurrencies to new homes over the last two years. Now, with inflation at a nearly 40-year high and at least three priced-in rate hikes, the hunt for investing safe havens is on.

U.S. wages are rising after decades of stagnation. And yet, by all indications, income inequality in the U.S. is the highest ever and growing, and tens of millions of full-time workers still fail to earn a living wage.

In what even the U.S. Treasury says will be a frustrating tax season, families claiming the child tax credit and newly self-employed Americans are among filers likely to see the biggest challenges this year.

There are almost always ways to make things work financially between a couple. Sometimes a skilled financial planner has enough tools to accomplish this. Sometimes financial therapy is necessary. Fortunately, there are financial therapists that specialize in couples.

The Fed is walking a tightrope between instability and inflation. Can it successfully tame inflation without causing severe market dislocations?

To reap the potential tax benefits of MLP investing and to make sure the allocation is meeting an investor’s needs, it’s important to understand the nuances of MLP investing.

In 2012, an SEC director declared that conflicts kill objective investment advice. But this is no longer true, according to new guidance from the CFP Board.

Is the failure of the value factor over the last decade due to the inability of book value to incorporate so-called “intangible assets,” such as the intellectual property that has propelled companies like Amazon, Alphabet and Apple? New research provides the answer.

Laurence Kotlikoff is a world-class economist who can convince you to pay off your mortgage and make you snort out your nose laughing at the same time; Money Magic is his compendium of life hacks aimed at leaving the reader wealthier and happier.

A rapid one-two punch of interest-rate hikes and balance-sheet reduction from the Federal Reserve risks unsettling bond and stock markets that have already taken a beating.

The head of the Bank for International Settlements, Agustin Carstens, recently set out a dark vision for our financial future, quoting Goethe’s “Faust” and claiming that the “soul” of money was at stake.

The pass rate for the second level of the chartered financial analyst exam bounced back from historic lows set last year.

New U.S. home construction unexpectedly strengthened in December to the fastest pace in nine months, led by apartment projects and suggesting builders found some success navigating shortages of materials and labor.

If a recently widowed client hasn’t fired you, then you are among a lucky few. Here’s a thought experiment that illustrates the vulnerability advisors face when they don’t engage the female half of a couple.

Applications for U.S. state unemployment insurance surged last week to a three-month high, suggesting that the omicron variant is having a bigger impact on the labor market.

Exiting bankruptcy alone won’t bring Puerto Rico prosperity and vitality. But it’s a crucial first step.