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Investor demographics: how wealth, age and gender affect decisions
By LARRY SWEDROE To determine whether investor demographics provide information as to the holdings of their portfolios, Sebastien Betermier, Laurent Calvet, Samuli Knüpfer and Jens Kvaerner, authors of the February 2022 study What Do the Portfolios of Individual Investors Reveal About the Cross-Section of Equity Returns?, examined the stockholdings of 365,000...
Who buys cryptocurrencies?
By LARRY SWEDROE Since their introduction in 2008, cryptocurrency markets have experienced both multiple, massive bull markets and devastating drawdowns, periods of both euphoria and despair, and fear of missing out (FOMO). For example, bitcoin, which traded at just $0.09...
Does such-and-such an asset belong in my portfolio?
There are so many different kinds of assets you can invest in, and the financial pages are full of ideas for options to consider. But how do you decide what does and doesn’t deserve a place in your portfolio? WES...
How does R&D spending affect future returns?
By LARRY SWEDROE Asset pricing models are important because they help us understand which factors explain the variation of returns across diversified portfolios. However, models are not like cameras that provide a perfect picture of the world. If models were perfectly...
Have you got a death box?
Readers of this blog very likely have multiple bank and savings accounts, as well as pension products. JONATHAN HOLLOW recommends that you gather this information in one place, to make it less stressful for others when you die, as well as...
Factor momentum and stock momentum
By LARRY SWEDROE Empirical research, including the 2017 paper A Century of Evidence on Trend-Following Investing, has found momentum to be a persistent and pervasive factor in returns of not only stocks but also other asset classes, including bonds, commodities...
Should ESG just focus on climate change?
The inevitable backlash against environmental, social and governance (ESG) strategies that we have seen in 2022 is now giving way to more practical reflections about the way forward for sustainable investment. A new industry paper provides a possible framework. Up...
