Back-tested Strategies: Real or Random?
Have you ever seen a bad back-test? Investment professionals have been jokingly asking that question for years, and the answer remains the same: of course not.
What does financial success look like for your clients? Is saving and investing about becoming wealthy, or is it really about securing a reasonable retirement, putting children through college, or buying that first home?
With the recent implementation of parts of the U.S. Department of Labor’s fiduciary rule, advisors are sharpening their pencils when it comes to performing due diligence on equity and fixed income holdings in their clients’ portfolios.
This is an exciting time to be an investor, but it’s also a very uncertain one. Risks to both the upside and downside are much higher than they were even…
Moving away from cash in either direction on the seesaw increases return. On the rate-sensitive side, moving away from the center increases duration—a measure of interest-rate risk—but investors are compensated with higher yields.
To gain an understanding of the latest changes in emerging markets—in particular those changes related to China, the largest emerging markets country—we spoke with Vanguard’s head of ETF Product Management, Rich Powers.
Indexing has become an undeniable force in the investment world…and indexing’s rise didn’t happen by accident.
Globalization, China, slow growth, and “transitory factors” such as cheaper cell phone plans help explain stubbornly low inflation. But they’re not the whole story.
Some sectors have gotten downright spooky As we move into the season of Pumpkin Spice Lattes, many sectors in the market have given investors more treats than tricks this year.…
Investors often ask us which of the two main bond market risks they should focus on—interest rate or credit. Our answer? Both—and the way they interact with each other.
So what’s the ideal construction? Would maintaining a simple 50/50 split between risk-reducing and return-seeking assets do the trick?
And bonds are extraordinarily good at generating income. As Display 4 shows, bond returns come from two places—capital appreciation and coupon income.
China, along with the rest of the world, has experienced a long-running decline in productivity growth—a decline that accelerated after the Global Financial Crisis.
President Trump released a framework for his tax reform in late September. This nine-page document is what members of Congress will use to write the final legislation, and so it understandably lacks…
What’s harder than getting your clients who are reluctant to save to have the discipline to regularly contribute to their investment portfolio?
Low volatility investment strategies don’t need high levels of market volatility to do well. Market volatility tends to cluster: it can be subdued and then burst higher.
Active versus passive. Active or passive. The active-passive debate. Whatever the exact words, the theme dominates portfolio construction conversations.
When I tell people about the seven-day race I ran in the Sahara last year, they ask questions. The most common one is, “Why?”
At the top of every equity market cycle, some prognosticator invariably claims “this time it’s different,” helping foster pro-risk behavior and a false sense of security at precisely the wrong time.
Carbon emission awareness has been gaining greater prominence on many market participants’ radar as they continue to seek and demand carbon emission information and related risks for companies associated with…