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Introducing our new portfolio review service for professionals
The vast majority of pensions funds, charities, endowments and other institutional portfolios have underperformed the market for decades. The way to stop the rot is to have an independent portfolio review, reduce fees and complexity, and increase diversification. From today, that’s precisely what TEBI is offering. As anyone who’s read The...
The price of friendship
This tale is part of LARRY SWEDROE’s Investor Tales series. Unless otherwise specified, the tales are hypothetical scenarios, designed to educate the reader on investment principles. Rick and Phil had been friends for over 30 years. It was their tradition to have...
What does GameStop mean for market efficiency?
By CRAIG LAZZARA Recent headlines have reflected the extraordinary behavior of GameStop Corp.; the company’s stock rose from $18.84 at year-end 2020 to $325 at the close on Jan. 29, 2021, then declined to $90 in the first two trading days of February....
A value premium update for the not very interested
Mention the value premium to investors and chances are their eyes will glaze over. Most have never heard of it — and many who have head of it probably can’t remember what it is. But, believe us, this stuff is important, so...
The impact of Morningstar ratings on fund flows and returns
By LARRY SWEDROE Since capital flows impact security prices, an interesting question is whether non-fundamental correlated demand — driven by mutual fund investors’ tendency to chase Morningstar ratings — creates systematic style-level price patterns. Itzhak Ben-David, Jiacui Li, Andrea Rossi and...
What GameStop means and what it doesn’t
Robin writes: Someone asked me yesterday why TEBI has written anything, or barely commented on, the GameStop saga. To be honest, like my friend, the adviser and writer, Rick Ferri, I don’t really care: Long-term total market index fund investors don’t...
Trading on a phone increases risk-taking, study finds
We’ve explained many times how trading individual stocks is a bad idea. Markets aggregate all known information about the value of a particular stock. With every trade — and high-frequency traders are typically trading ten thousand times every second — market participants...
