There are two kinds of pitches. Those that are clearly bad ideas, and those where it’s not clear at all if it’s a good idea or a bad idea. Michael Mauboussin
VIDEO OF THE DAY - Animated Map of Unemployment Over Time
RETIREMENT FINANCE AND PLANNING
When Investment Professionals Discover Market Effects onRetirees: Why Drawdowns Matter: A Visual Demonstration, Willowstreet
How Should Your Asset Allocation Look in Retirement?
Pfau. [how to market time without actually calling it market timing]
A Simple Age-Based Retirement Spending Rule-Of-Thumb ForWhen Your Dog Eats Your Simulator, W Selden . Sometimes
you just want a simple, well-informed, easy-to-manage guess.
Emerging Software Solutions To Illustrate Safe WithdrawalRates To Pre-Retirees, kitces.com two new software solutions have recently
emerged for financial advisors, specifically to illustrate the safe withdrawal
rate approach, and be able to model the impact of varying assumptions, from a
wider range of asset classes, to the impact of investment expense ratios and
advisory fees, and time horizons that may be longer or shorter than 30 years.
The Ultimate Guide to Safe Withdrawal Rates – Part 14:Sequence of Return Risk, Earlyretirementnow.com
Sequence of return risk is a symmetric risk: you can benefit from it or
it can seriously harm your investment returns. It impacts both retirees and
savers and the risk is exactly a zero-sum game. Sometimes the retiree loses and
the saver gains, as in the 2000s, but there were many instances where this was
reversed.
Rich Retirees Are Hoarding Cash Out of Fear, Bloomberg. A new study finds many U.S.
retirees keep saving even after they’ve retired. The average American over the
age of 60 cuts spending 2.5 percent per year, or about 20 percent over a 10-year
period, according to an analysis of University
of Michigan
The stunning impact of fund fees on a retirement portfolio, Financial-planning.com. What is the impact of different fee levels in
a retirement portfolio over a period of 25 years from age 70 to 95? To put it
bluntly, it’s huge.
MARKETS AND INVESTING
There Are Now More Indexes Than Stocks, Bloomberg.
The Mathematics of Principal Component Analysis.
ReSolve. Unfortunately, Grinold makes
the strong assumption that the individual securities in a stock picker’s
universe represent independent bets. http://www.investresolve.com/blog/the-case-for-tactical-alpha-part-2-the-fundamental-flaw-of-grinolds-fundamental-law/
The Unknown Unknowns of Investing,
ofdollarsanddata.com.
the rise of ESG investing, AbnormalReturns.com In a world of
nearly a hundred boxes of cereal on the grocery store shelf and literally
millions of hours of on-demand entertainment at our fingertips it should not be
surprising that investors want to express their values through their
portfolios.
Understanding negative inflation risk premia, sr-sv.com Following
this rationale, when the future movements of inflation are expected to be
positively correlated with the future marginal utility of consumption, there is
a positive premium for holding financial assets that offer nominal payoffs.
This is so because the ‘real’ return on these assets deteriorates with
inflation. To be more specific, in case market participants see the risk of
‘stagflation’, the inflation risk premium would be positive as investors like
to hedge for high inflation that will ‘eat up’ real returns in the economic
downturn. In contrast, the expectation of a deflationary recession could lead
to a negative inflation risk premium as nominal bonds perform well in case of
deflation.”
Understanding Cash Will Make You A Better And Happier Investor, portfoliocharts.com Cash is possibly the single most misunderstood
investment asset, and both perspectives lead people to conclusions that
underestimate the role that smart asset allocation plays in investing success.
ALTERNATIVE RISK
Smart Beta with Muni Bond ETFs, NewFound. Moving beyond
active strategies, factors can also be valuable tools when setting strategic
sector allocations within a municipal bond sleeve and when evaluating and
blending municipal bond managers.
Factor Model Links at AbnormalReturns.com
What target should the Fed be shooting at? Cochrane. So is a glide path toward 3 percent the
answer? Maybe not. How about zero?
This growing fraud will drain your bank account, cnbc. So-called account-takeover fraud — which
entails thieves using stolen information to access a consumer's accounts and
transfer money — was up 31 percent in 2016 from 2015, according to a Javelin
Strategy & Research report from earlier this year. Losses due to such fraud
topped $2.3 billion, a 61 percent increase over the same period.
Newspapers are still more important than cheese, FRED
blog.
Gender, marital status and investment performance,
Financial-Math.Org In a separate study,
Barber and Odeon found that men trade 45 percent more than women, and that this
trading reduced their overall rate of return by 14.2%, as opposed to “only” a
9.1% reduction for women. Again, over a 40-year time horizon, these losses are
35% of portfolio value for men and 24% for women. If we compare the average
amount of “churning” (portfolio turnover), the figures are 77% for men and 53%
for women.
No comments:
Post a Comment