Results for 'larry swedroe'
Questions for Larry Swedroe, please
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. […]
An interview with Larry Swedroe
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.
The lottery phenomenon in corporate debt
The most basic principle of finance is that risk and ex-ante (expected) returns should be related. However, a large body of academic research (for example, here, here, here, and here) has found that individual investors (though not institutions) have an irrational preference (from a traditional finance perspective), or “taste,” for stocks with lottery-like […]
The consequences of short squeezes
Short selling – betting on a stock to fall in price by borrowing shares to sell them, hoping to buy them back at a future date at a lower price – is risky because losses are unlimited (unlike going long, where losses are limited to your investment). Short selling involves other risks as […]
Do markets reward firms for being more green?
In our book, Your Essential Guide to Sustainable Investing, Sam Adams and I explained that economic theory suggests that if a large enough proportion of investors choose to favour companies with high sustainability ratings and avoid those with low sustainability ratings (sin businesses), the favoured company’s share prices will be elevated and the […]
The growth of hedge funds is the greatest financial anomaly
“Hedge funds are the only component of Wall Street that is built pretty much entirely upon myth. Few areas of financial endeavour have been a subject of so many hoary myths, moronic half-truths, goofy speculation, once-true falsehoods, and knucklehead fantasies.” — Gary Weiss, Wall Street versus America 25 years […]
Is higher inflation always bad news for stocks?
My September 11, 2023, Advisor Perspectives article reviewed the empirical research findings on the relationship between inflation, corporate profits and stock returns, demonstrating that over 10-year periods and even longer, equities have not provided a strong inflation hedge. They have tended to suffer from a less-stable economic climate (the rate at which future […]
Active or passive investors: Which is the “smart money”?
The last few decades have seen a dramatic shift of assets away from active to passive (such as, but not limited to, index funds) strategies. The shift occurred due to the overwhelming body of evidence demonstrating that while it is possible to win the game of active management, the odds of doing so […]
