Results for 'larry swedroe'
For football fans — sorry, US readers, I mean soccer fans — the summer can drag. It’s that time of year when we feel obliged to rediscover our interest in cricket and, for two weeks only during Wimbledon, tennis. But there is one consolation to the lack of matches and that’s the transfer gossip. […]
A while ago I mentioned the inaugural Evidence-Based Investing Conference, which is taking place in New York City in November. Over the next couple of months, I’m going to be helping to promote the event with a series of interviews with some of the speakers.
By LARRY SWEDROE The basic hypothesis of behavioural finance is that individual investors are not fully rational when making investment decisions — due to behavioural biases, they make costly mistakes. Two related biases are recency bias — the tendency to overweight recent events/trends and ignore long-term evidence — and loss aversion — the […]
LARRY SWEDROE The 52-week high (52WH), the highest price a stock has traded for over the prior 365 days, is one of the key pieces of information communicated by the financial press. Research has found increased trading volume near the 52WH as well as subsequent price continuation (momentum). Explanations for the 52WH […]
By LARRY SWEDROE Machine learning (ML) is a field of inquiry devoted to understanding and building methods that “learn”—methods that leverage data to improve performance without human intervention. It is seen as a part of artificial intelligence, or AI. ML algorithms build a model based on sample data, known as training data, in […]
By LARRY SWEDROE Patience: A quality apparent among such lower life forms as snails and tortoises but rarely among humans who invest in financial assets. — Jason Zweig, The Devil’s Dictionary The decade from 2012 through 2021 provided a test of the faith and discipline for value investors as the Fama-French […]
By LARRY SWEDROE Nobel Prize winner Eugene Fama is considered the father of the efficient market hypothesis (EMH), which asserts that financial markets are “informationally efficient” — the result of financial markets processing millions of trades, reflecting the viewpoint of investors, worth hundreds of billions of dollars each day. Using these trades […]
By LARRY SWEDROE The persistently poor performance of actively managed funds has led investors to shift capital away from actively managed mutual funds to passively managed funds, such as index funds, with much lower expense ratios. However, even for index funds, the expense ratio — the only observable and reported cost — […]