Search found 2524 matches

by Robert T
Tue Oct 23, 2018 8:56 pm
Forum: Investing - Theory, News & General
Topic: DFA small value... acitve management?
Replies: 60
Views: 2904

Re: DFA small value... acitve management?

. Thanks grok87. Yes - looks like the 'momentum' screens cost DFSVX in 2016 relative to the Dimensional US Small Value Index. Interestingly DFA added the momentum screens in 2003, as I recall, and the relatively large negative momentum in 2003, 2009, and 2016 put a drag on DFSVX returns in those yea...
by Robert T
Mon Oct 22, 2018 6:55 pm
Forum: Investing - Theory, News & General
Topic: DFA small value... acitve management?
Replies: 60
Views: 2904

Re: DFA small value... acitve management?

. On “Dimensional Indexes” - the DFA Matrix Book 2018 includes many of them https://www.fplcapital.com/wp-content/uploads/2018/06/Matrix-Book-2018.pdf For example it has something called the “Dimensional US Small Cap Value Index”. One would think that this is what is broadly tracked by the DFA US Sm...
by Robert T
Tue Oct 16, 2018 10:19 pm
Forum: Investing - Theory, News & General
Topic: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"
Replies: 203
Views: 10819

Re: "Why Jack Bogle Doesn't Own Non-U.S. Stocks"

. 04/1998 to 9/2018 (since inception of DFA Emerging Markets Value) - over the past 20+ years Annualized return/ Sharpe Ratio ..9.7% / 0.47 = DFA US Small Value ..9.2% / 0.49 = DFA International Small Value 10.1% / 0.44 = DFA Emerging Markets Value 10.1% / 0.52 = 50:37:13 DFA US Small Value:DFA Intl...
by Robert T
Fri Oct 12, 2018 1:34 pm
Forum: Investing - Theory, News & General
Topic: Does international really buy you diversification?
Replies: 43
Views: 4492

Re: Does international really buy you diversification?

. Just had a quick look at my returns over past 15 years (2003-2017) Returns on international stock allocation > returns on US sock allocation in 8 of the years Returns on US stock allocation > returns on international stock allocation in 7 of the years Buying the "haystack" to me includes internati...
by Robert T
Fri Oct 12, 2018 12:47 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: How A Multi-factor Portfolio Is Constructed Matters
Replies: 5
Views: 451

Re: Larry Swedroe: How A Multi-factor Portfolio Is Constructed Matters

. Larry also makes this qualification in the article: Of course, the issue is not entirely black and white, and there is room for debate depending on how the analysis is conducted. For example, Alpha Architect has a research piece that examines more concentrated characteristics-focused portfolios an...
by Robert T
Fri Sep 28, 2018 8:26 am
Forum: Investing - Theory, News & General
Topic: A quick peek at a RAFI Fundamental Large-Cap Index Fund, ten years later
Replies: 22
Views: 1619

Re: A quick peek at a RAFI Fundamental Large-Cap Index Fund, ten years later

. The funds have performed as expected. From the Fundamental Index book (pg 103): "Because a Fundamental Index portfolio has a value tilt relative to a cap-weighted market, a growth market will help the cap-weighted market relative to a Fundamental Index portfolio" From pg. 264 of the book. During 1...
by Robert T
Sun Jul 01, 2018 6:14 am
Forum: Investing - Theory, News & General
Topic: Do Advisers Add $$$ Value?
Replies: 74
Views: 6592

Re: Do Advisers Add $$$ Value?

. Costs matter (no matter what anyone tells you), they are guaranteed. A 1% advisor fee can account for 25% of your withdrawal rate. Putting it another way, in this case, for every $100 you withdraw, $25 goes to the pocket of the advisor, $75 goes to you. Perhaps you speak to the advisor once a year...
by Robert T
Sat Jun 23, 2018 6:16 am
Forum: Investing - Theory, News & General
Topic: Factor Investing Makes Someone Money, But Maybe Not You
Replies: 126
Views: 9780

Re: Factor Investing Makes Someone Money, But Maybe Not You

. Just had a look at the differences between my actual returns (P1 = actual in table below) and two portfolios: (i) a three fund portfolio with a similar stock:bond and US:non-US split in equities (37.5:37.5:25 Vanguard total stock market (VTSMX):Vanguard total international stock fund (VGTSX):Vangu...
by Robert T
Fri Jun 22, 2018 5:07 am
Forum: Investing - Theory, News & General
Topic: Factor Investing Makes Someone Money, But Maybe Not You
Replies: 126
Views: 9780

Re: Factor Investing Makes Someone Money, But Maybe Not You

. From this Fama-French 1993 article : Risk factors in equities = exposure to market, value, and size; in bonds = exposure to term and default risk. “Factor investing” is often discussed as if exposure to the market is not a risk factor, while it is the largest of those in the Fama-French article. E...
by Robert T
Sat Jun 16, 2018 12:58 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Rediscovering The Size Effect
Replies: 36
Views: 3809

Re: Larry Swedroe: Rediscovering The Size Effect

. Using 1927-2017 data from Ken French’s website. On the magnitude of small cap return differences Annualized return / Growth in $1 ..9.8% / $4,849 = Large caps (Largest 30%) 12.0% / $30,484 = Small Caps (Smallest 30%) Small cap stocks outperformed large cap stocks. The average return difference was...
by Robert T
Fri Jun 08, 2018 6:19 pm
Forum: Investing - Theory, News & General
Topic: The Psychology of Money - A Blog Post
Replies: 67
Views: 10539

Re: The Psychology of Money - A Blog Post

. Great article. “… the first rule of compounding is to never interrupt it unnecessarily.” “Don’t do anything,” are the most powerful words in finance. ‘..the person with enough room for error in part of their strategy to let them endure hardship in the other part of their strategy has an edge…’
by Robert T
Fri Jun 01, 2018 7:08 pm
Forum: Investing - Theory, News & General
Topic: "How To Stay-The-Course and Stick With Your Investment Plan"
Replies: 4
Views: 1289

Re: "How To Stay-The-Course and Stick With Your Investment Plan"

.
Stay the course. No matter what happens, stick to your program. I've said "stay the course" a thousand times, and I meant it every time. It is the most important single piece of investment wisdom I can give you." - John Bogle
Too few people take this advice seriously.
.
by Robert T
Thu May 31, 2018 8:19 pm
Forum: Investing - Theory, News & General
Topic: Cliff Asness - The Hedgie in Winter
Replies: 40
Views: 4025

Re: Cliff Asness - The Hedgie in Winter

. I agree with Asness on this point. Many of the comparisons made are apples to oranges (i.e they do not compare factor matched portfolios). That being said, Bernstein had a nice analysis of hedge fund returns in his book on Skating Where the Puck Was. The analysis was based on the HRF Global Return...
by Robert T
Thu May 31, 2018 7:47 pm
Forum: Investing - Theory, News & General
Topic: To be or not to be complex, that is the question
Replies: 146
Views: 13162

Re: To be or not to be complex, that is the question

. Generally I like simplification - and in this respect I particularly liked and benefited from the earlier book by Jane Quinn https://www.amazon.com/Smart-Simple-Financial-Strategies-People/dp/0743269950 . Simple vs. complex are not binary but a continuum. Owning only one stock is arguably simpler ...
by Robert T
Mon May 28, 2018 6:48 am
Forum: Investing - Theory, News & General
Topic: Factor Investing?
Replies: 20
Views: 1930

Re: Factor Investing?

@Robert T, thanks for pointing to the DFA Balanced strategy and link to Portvolio Visualizer. That's quite a lot of DFA funds in the DFA strategy, so I put in a third portfolio consisting of DGSIX (DFA 60/40 Global) and DGEIX (DFA 100 Global) in a ratio of 68/32 to get a 75/25 portfolio and took a ...
by Robert T
Mon May 28, 2018 4:47 am
Forum: Investing - Theory, News & General
Topic: Factor Investing?
Replies: 20
Views: 1930

Re: Factor Investing?

@Robert T, since you keep excellent records I wonder if you plugged your portfolio into Portfolio Visualizer if it would tell you a performance number that matches or achieves your actual real-world experience. My guess is that Portfolio Visualizer results would not even come close because it canno...
by Robert T
Sun May 27, 2018 4:26 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing?
Replies: 20
Views: 1930

Re: Factor Investing?

. Based on retrospective analysis (e.g. Fama-French 1993 , books by Bernstein, Swedroe, Swensen etc) set up a portfolio in 2003 (75:25 stock:bond portfolio with tilt to smaller cap and value). Have kept the same asset allocation/factor load targets over last 15+ years. Prospective (expected long-ter...
by Robert T
Fri May 25, 2018 3:28 am
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 84
Views: 7215

Re: Fact, Fiction, and the Size Effect

So, Robert T, are you making any changes to your investment policy based on this research, and why or why not? Kevin No need to make any changes. Historical evidence (over multiple time frames) and actual returns indicate that my allocation/combination of factor load targets are not simply leverage...
by Robert T
Tue May 22, 2018 6:56 pm
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 84
Views: 7215

Fact, Fiction, and the Size Effect

. Interesting read from AQR - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3177539 The facts we present include: that the size effect diminished shortly after its discovery and publication; that it is dominated by a January seasonal effect; that it is not applicable or does not work for other...
by Robert T
Mon May 21, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: Does your value fund own the wrong value stocks?
Replies: 25
Views: 3304

Re: Does your value fund own the wrong value stocks?

we have to take into account that this period starts in 2000, the year the tech bubble which was largely LCG burst. Weightings in that LCG segment were huge in TSM which suffered greatly in 2000 - 2003, while LCG was non-existent in DFLVX. If instead we choose the last 10 years to compare the two, ...
by Robert T
Mon May 21, 2018 1:04 am
Forum: Investing - Theory, News & General
Topic: Does your value fund own the wrong value stocks?
Replies: 25
Views: 3304

Re: Does your value fund own the wrong value stocks?

Now it no longer has worked in retrospect even on a cost-free basis for 18 years. DFA uses P/B as a value metric. Over the last 18 years: 2000-2017: Annualized Returns / Growth in $10,000 8.85% / $46,035 = DFA Large Value Fund [DFLVX] 5.76% / $27,398 = Vanguard Total Stock Market [VTSMX] https://ww...
by Robert T
Sun May 20, 2018 11:25 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: No Need For Corp Bonds?
Replies: 38
Views: 4274

Re: Larry Swedroe: No Need For Corp Bonds?

Why are you choosing such a high equity allocation (75%)? That is my equity allocation. Why is it assumed to be that you must have only one or the other? As just one example, could have 50% stocks, 25% treasuries, and 25% corporates...or perhaps better for individuals, who have tax advantaged accou...
by Robert T
Sun May 20, 2018 8:39 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: No Need For Corp Bonds?
Replies: 38
Views: 4274

Re: Larry Swedroe: No Need For Corp Bonds?

Do you have access to data exploring short-term corporate and treasuries, intermediate-term corporate and treasuries, and total corporate and total government bond results? Just curious. I wouldn't recommend restricting yourself to long-term anything, corporate or government. Similar result with sh...
by Robert T
Sat May 19, 2018 6:51 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: No Need For Corp Bonds?
Replies: 38
Views: 4274

Re: Larry Swedroe: No Need For Corp Bonds?

. 2003-2017: Annualized Return (%) / SD Long-term corporate bonds = 6.9 / 6.6 Long-term government bonds = 6.0 / 12.3 Some may look at this data and say long-term corporate bonds were ‘better’ because they had 0.9% higher return with almost half the volatility (double the Sharpe ratio). This is true...
by Robert T
Fri May 18, 2018 6:20 pm
Forum: Investing - Theory, News & General
Topic: Does your value fund own the wrong value stocks?
Replies: 25
Views: 3304

Re: Does your value fund own the wrong value stocks?

. Reminds me of this earlier article - Three Value Investors Met in a Bar I would just note that according to the data on Ken French's website the difference in annualized returns across different value sort metrics (price-to-book, price-to-earnings, price-to-cash flow) has been smaller in small cap...
by Robert T
Thu May 17, 2018 12:38 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Value Premium Lives!
Replies: 39
Views: 3376

Re: Larry Swedroe: Value Premium Lives!

Just because something has growth in its name doesn't mean it is the opposite of value. For example the S&P 600 Growth ETF has in fact had a positive and significant 'value tilt Robert: I would highly recommend the paper that JoMoney linked (and that we originally discussed a few years back in this...
by Robert T
Wed May 16, 2018 7:16 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Value Premium Lives!
Replies: 39
Views: 3376

Re: Larry Swedroe: Value Premium Lives!

, Just because something has growth in its name doesn't mean it is the opposite of value. For example the S&P 600 Growth ETF has in fact had a positive and significant 'value tilt'. https://www.portfoliovisualizer.com/factor-analysis?s=y®ressionType=1&symbols=IJS+IJT&endDate=05%2F16%2F2018&factor...
by Robert T
Thu May 10, 2018 7:38 pm
Forum: Investing - Theory, News & General
Topic: Cliff Asness (AQR) on Bloomberg discussing Fixed Income
Replies: 15
Views: 1969

Re: Cliff Asness (AQR) on Bloomberg discussing Fixed Income

. Why more complex measures of 'value' in bonds? Simple measures didn’t work. This raises questions on the robustness of a ‘value premium’ in bonds as it seems sensitive to definition used. For example, from the earlier paper on Value and Momentum Everywhere http://docs.lhpedersen.com/ValMomEverywhe...
by Robert T
Thu May 10, 2018 9:51 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Ignore Investor Noise
Replies: 4
Views: 1110

Re: Larry Swedroe: Ignore Investor Noise

.
I like this ...
Most of all, have a well-developed, written investment plan. Develop the discipline to stick to it, rebalancing when needed and harvesting losses as opportunities present themselves.
by Robert T
Thu May 10, 2018 6:09 am
Forum: Investing - Theory, News & General
Topic: Cliff Asness (AQR) on Bloomberg discussing Fixed Income
Replies: 15
Views: 1969

Re: Cliff Asness (AQR) on Bloomberg discussing Fixed Income

. A difference in complexity. FF equity value = Highest book-to-market AQR fixed income value = "For corporate bonds we compare credit option adjusted spreads against two fundamental anchors designed to capture the ‘risk’ that the company may migrate to a poorer credit quality. Our first fundamental...
by Robert T
Sun May 06, 2018 2:46 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Factors In Fixed Income
Replies: 30
Views: 3037

Re: Larry Swedroe: Factors In Fixed Income

. Here's the Journal of Portfolio Management version of the AQR paper on Style Investing in Fixed Income - https://www.aqr.com/Insights/Research/Journal-Article/Style-Investing-in-Fixed-Income. AQR now has a bond mutual fund that "applies fundamental drivers of fixed income returns such as Value, Mo...
by Robert T
Wed Mar 28, 2018 8:07 am
Forum: Investing - Theory, News & General
Topic: DFA Funds Direct Access w/o Advisor ? John Hancock
Replies: 16
Views: 2608

Re: DFA Funds Direct Access w/o Advisor ? John Hancock

. Here's an update on the performance of a portfolio of DFA funds and a portfolio of non-DFA funds that I set up a long-time ago now. The portfolios had the same estimated factor exposure/loads. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=9&endYe...
by Robert T
Mon Mar 26, 2018 7:23 pm
Forum: Investing - Theory, News & General
Topic: Seven-Year Investor Old Beats Harvard’s Endowment Fund
Replies: 21
Views: 3060

Re: Seven-Year Investor Old Beats Harvard’s Endowment Fund

. There’s an error in the analysis. The time period for the endowment returns is the 10-year period ending June 2017, while the time period used to calculate the returns of the two portfolios in the article is the 10-year period ending December 2017. Both portfolios included EMB, which does not qual...
by Robert T
Sat Mar 24, 2018 4:48 pm
Forum: Investing - Theory, News & General
Topic: "Smart Beta's Foundation Problem"
Replies: 31
Views: 3451

Re: "Smart Beta's Foundation Problem"

. 1. Interesting articles. The Institutional Investor article was light hearted, even humorous in places. 2. I agree about conflict of interest inherent in research by index providers promoting their factor indexes. Just as there are in analyses by some advisors showing 1%+ superior back-tests in fu...
by Robert T
Sun Mar 18, 2018 6:47 pm
Forum: Investing - Theory, News & General
Topic: AQR Paper On Alternative Risk Premia
Replies: 5
Views: 737

Re: AQR Paper On Alternative Risk Premia

. Interesting. Two observations: (1) Exhibit 5 shows a 60:40 stock:bond market portfolio with 20% "alternative risk premia" added. This implies 48% stocks: 32% bonds: 20% alternative risk premia which is equivalent to a 48% stock:52% bond portfolio with a factor tilt (assuming the alternative risk p...
by Robert T
Sun Mar 18, 2018 9:15 am
Forum: Investing - Theory, News & General
Topic: Question for Robert T/ people familiar with factor analysis.
Replies: 10
Views: 1597

Re: Question for Robert T/ people familiar with factor analysis.

I lost ya:-) so are viov/rzv definitely better is what you are saying? Since inception, IJS (that tracks the same underlying index as VIOV) has had very similar size and value factor loads, on average, as DTMVX, while the 'market' load has been 0.10 smaller. Factor loads: Aug. 2000 to Jan 2018 Mark...
by Robert T
Sat Mar 17, 2018 2:43 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Factor Investing Alive & Well
Replies: 11
Views: 1917

Re: Larry Swedroe: Factor Investing Alive & Well

. Most factor-based funds are long-only, meaning they provide exposure not only to the factor being targeted, but also to market beta. On the other hand, AQR’s Style Premia Alternative Fund (QSPRX, 1.5% expense ratio), by virtue of being a long/short fund, is a pure factor fund, meaning it has no ex...
by Robert T
Fri Mar 16, 2018 8:04 pm
Forum: Investing - Theory, News & General
Topic: Question for Robert T/ people familiar with factor analysis.
Replies: 10
Views: 1597

Re: Question for Robert T/ people familiar with factor analysis.

, From March 2009 to January 2018 Annualized Factor Premiums Equity premium = 18.85% Size premium = 0.76% Value premium = 0.57% Source: https://www.portfoliovisualizer.com/factor-statistics?s=y&factorDataSet=-1&marketArea=0&ffmkt=true&__checkbox_ffmkt=true&ffsmb=true&__checkbox_ffsmb=true&__checkbox...
by Robert T
Thu Mar 15, 2018 2:42 pm
Forum: Investing - Theory, News & General
Topic: Question for RobertT
Replies: 45
Views: 12006

Re: Question for RobertT

Dieharder wrote:
Thu Mar 15, 2018 8:30 am
Do you still believe value premium exists?
I have a long-term value load target of 0.4, so believe that averaged over my investment life-span there will be a value premium. Obviously no guarantees that this will be the case https://papers.ssrn.com/sol3/papers.cfm ... id=3081101
.
by Robert T
Thu Mar 15, 2018 8:19 am
Forum: Investing - Theory, News & General
Topic: Question for RobertT
Replies: 45
Views: 12006

Re: Question for RobertT

I'd love to hear if you have any thoughts yet on the new Vanguard factor and multifactor funds. Do you plan to use any of them? No changes for me. Don't have many thoughts yet on these new funds - but here are some. When evaluating new products, I simply ask the question: Can it achieve my factor l...
by Robert T
Wed Mar 14, 2018 4:02 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Long/Short Can Have A Tax Edge
Replies: 9
Views: 1085

Re: Larry Swedroe: Long/Short Can Have A Tax Edge

I don't trust M* tax numbers, and I don't think anyone should. From the AQR Prospectuses AQR Style Premium Alternative Fund Since inception (Oct. 30, 2013) to December 2016 Before tax return = 7.40% After tax return = 4.28% Difference = 3.12% AQR Long/Short Equity Since inception (July 16, 2013) to...
by Robert T
Wed Mar 14, 2018 11:13 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Long/Short Can Have A Tax Edge
Replies: 9
Views: 1085

Re: Larry Swedroe: Long/Short Can Have A Tax Edge

.
Would just note that according to M*

AQR Style Premia Alternative Fund (QSPRX).

Since inception:

Before tax return = 7.89%
After tax return = 4.53%
Difference = 3.36%

Implies 43% of the return went to taxes
.
by Robert T
Tue Mar 06, 2018 8:03 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe’s New Book Available: Reducing Risk Of Black Swans
Replies: 130
Views: 15355

Re: Larry Swedroe’s New Book Available: Reducing Risk Of Black Swans

If you believe markets are efficient, which supposedly all Bogleheads do, then you should also believe that all risky assets should similar risk adjusted returns... Extract from an earlier paper by Campbell Harvey - provides a slightly different view https://faculty.fuqua.duke.edu/~charvey/Research...
by Robert T
Mon Mar 05, 2018 8:32 pm
Forum: Investing - Help with Personal Investments
Topic: Does DFA justify the higher ER?
Replies: 16
Views: 1626

Re: Does DFA justify the higher ER?

. If my choice was: DFA US Small Cap Value (DFSVX) or Fidelity Small Cap Index (FSSVX) for small cap value exposure in tax-advantaged account. it would be an easy choice to use the DFA fund. As mentioned above, FSSVX tracks the Russell 2000 Index that has a smaller value tilt. In addition, it histor...
by Robert T
Sun Mar 04, 2018 4:36 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Active Fails In Fixed Income
Replies: 25
Views: 3225

Re: Larry Swedroe: Active Fails In Fixed Income

. Here's a comparison that may be of interest to some. Post ended up being longer than expected. I would consider the DFA Five-Year Global Fixed Income fund to be a fairly “active” fund. i.e. it uses a variable maturity approach (shifts the bond maturities in the portfolio as the yield curve changes...
by Robert T
Sat Mar 03, 2018 6:49 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Active Fails In Fixed Income
Replies: 25
Views: 3225

Re: Larry Swedroe: Active Fails In Fixed Income

Thank you Robert T. for your insights. Much appreciated. I see the link doesn't work anymore. Personally, I much preferred the old DFA website. It had some of the DFA research underpinning their approach (such as the linked paper in the earlier post), and other interesting articles articles by DFA ...
by Robert T
Sat Mar 03, 2018 5:34 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Active Fails In Fixed Income
Replies: 25
Views: 3225

Re: Larry Swedroe: Active Fails In Fixed Income

. --Using a variable maturity strategy For what its worth - here's my earlier take on a shifting maturity/duration approach .... on shifting maturities/duration (as used by some of the DFA funds). IMO, Fama’s research results underlying this method are not as robust (good research, just weak results...
by Robert T
Sat Mar 03, 2018 5:25 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Active Fails In Fixed Income
Replies: 25
Views: 3225

Re: Larry Swedroe: Active Fails In Fixed Income

. For what its worth - here's my earlier take on a shifting maturity/duration approach .... on shifting maturities/duration (as used by some of the DFA funds). IMO, Fama’s research results underlying this method are not as robust (good research, just weak results IMO) as some of his other research r...
by Robert T
Sat Mar 03, 2018 10:44 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Active Fails In Fixed Income
Replies: 25
Views: 3225

Re: Larry Swedroe: Active Fails In Fixed Income

. A quote from the article: The winning strategy for investors is the same for both stocks and bonds: Decide how much exposure you desire to common factors, and then implement the appropriate allocations using the lower-cost, passively managed mutual funds and ETFs that give you the most effective e...
by Robert T
Thu Mar 01, 2018 8:53 am
Forum: Investing - Theory, News & General
Topic: Your Paradigm for Long-term Inflation Risk?
Replies: 29
Views: 2125

Re: Your Paradigm for Long-term Inflation Risk?

. M * V = P * Y P = (M * V)/Y M = money supply V = velocity of money P = prices Y = output Prices are affected by money supply, velocity of money (essentially the number of transactions), and output. A large downward shock to output can lead to a large upward increase in inflation (e.g. cases of hyp...