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Re: The new profitability factor, US and int'l evidence

Larry, Thanks a lot. This thread has been extremely informative. Right now my assets are relatively small (under 6 figures) and spread out across accounts so I don't really have room for slicing and dicing. For the time being the simplicity of market weight indexing is worth the possibly lower retur...
by crake
Fri May 17, 2013 3:58 pm
 
Forum: Investing - Theory, News & General
Topic: The new profitability factor, US and int'l evidence
Replies: 149
Views: 5649

Re: The new profitability factor, US and int'l evidence

Random Walker, I think I understand what your saying, however, I still have some reservations. If I buy TSM I hold small value companies and I hold highly profitable companies. By "tilting" I am shifting from less risky assets to more risky assets with the expectation of higher returns. I ...
by crake
Fri May 17, 2013 3:18 pm
 
Forum: Investing - Theory, News & General
Topic: The new profitability factor, US and int'l evidence
Replies: 149
Views: 5649

Re: The new profitability factor, US and int'l evidence

Thanks all for your insights. This has been an interesting thread to read. After going through it all I think my question can be boiled down to this. According to this new research tilting towards profitability can lead to an increase in expected returns. My possibly over simplistic way of thinking ...
by crake
Fri May 17, 2013 1:54 pm
 
Forum: Investing - Theory, News & General
Topic: The new profitability factor, US and int'l evidence
Replies: 149
Views: 5649

Re: Trying to keep it simple

Thanks for the advice. I believe I am rebalancing for the right reason. My reason for rebalancing is to stick to my target AA. My question may end up being more theoretical than I originally thought. As much as I've thought about what a good AA would be it was still a somewhat arbitrary decision. I ...
by crake
Sat Mar 16, 2013 10:46 am
 
Forum: Investing - Help with Personal Investments
Topic: Trying to keep it simple
Replies: 2
Views: 453

Trying to keep it simple

Hi all. I've been lurking these forums for about 2 years now. I've learned an immense amount and want to start out by thanking everyone for being so helpful. I started reading investment advice when I started my first job about 3 years ago. I quickly discovered the advantages of low cost, passive in...
by crake
Fri Mar 15, 2013 9:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Trying to keep it simple
Replies: 2
Views: 453

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