A Wealth of Common Sense

NOVEMBER 17, 2024

People are terrible at self-regulation and self-awareness when it comes to eating. One study asked people how much bread they ate after leaving an Italian restaurant. Nearly one-third of the diners couldn’t recall how much they had. And 12% of the people who ate bread denied having eaten any at all.

Portfolio 141

Portfolio Food 141

Abnormal Returns

JULY 21, 2024

abnormalreturns.com) Top clicks this week Seven reasons you may want to venture away from the market portfolio. humbledollar.com) Rebalance your portfolio to tame risk, not to increase returns. (abnormalreturns.com) A lifetime subscription is anything but. morningstar.com) The stock market has changed so much over the past 50 years.

Portfolio 311

Portfolio Banking Assets Management 311

Abnormal Returns

SEPTEMBER 10, 2024

blogs.cfainstitute.org) Using machine learning for portfolio optimization. blogs.cfainstitute.org) A review of recent research on portfolio risk management including 'Does Systematic Tail Risk Matter?' klementoninvesting.substack.com) Why high volatility alternatives make sense in a portfolio perspective: capital efficiency.

Marketing 268

Marketing Marketing Risk Management Portfolio 268

Abnormal Returns

SEPTEMBER 3, 2023

Top clicks this week How (and where) to hold cash in your portfolio. morningstar.com) Do you need commodities in your portfolio? theverge.com) The story of a portfolio manager holding onto Credit Suisse stock too long. humbledollar.com) Why are mortgage rates so high? The cracks are showing.

Portfolio Management 278

Portfolio Management Retirement Portfolio Management 278

Abnormal Returns

JUNE 18, 2023

thereformedbroker.com) Five common portfolio mistakes including 'portfolio sprawl.' bilello.blog) Focus on the role bonds play in your portfolio. Top clicks this week Two reasons why the stock market has surged this year. capitalspectator.com) Fund fees really do matter.

Portfolio 277

Portfolio Investments Investing Marketing 277

Abnormal Returns

APRIL 16, 2024

Asset allocaiton Is regret a better measure to target for portfolio allocations? blogs.cfainstitute.org) Some evidence that it is possible to measure portfolio manager decision making. blogs.cfainstitute.org) Why asset allocation is sensitive to goals and assumptions. priceactionlab.com) The case against a cryptocurrency allocation.

Asset Allocation 277

Asset Allocation Portfolio Management Portfolio Assets 277

Abnormal Returns

MARCH 5, 2024

Crypto A little Bitcoin goes a long way in a portfolio perspective. quantpedia.com) How to use factors to build a crypto portfolio. sparklinecapital.com) Options How retail traders use options. papers.ssrn.com) A video on the Black-Scholes options pricing model.

Retail 277

Retail Portfolio Investing Investments 277

Abnormal Returns

MARCH 26, 2024

advisorperspectives.com) Research Larry Swedroe, "Diversification means accepting the fact that parts of your portfolio may behave entirely differently than the portfolio itself." (mrzepczynski.blogspot.com) Financial data is noisy. Get used to it. alphaarchitect.com) Is asset demand becoming less sensitive to interest rates?

Portfolio 265

Portfolio Assets Investments Investing 265

Abnormal Returns

OCTOBER 22, 2024

mailchi.mp) Should your portfolio consider your career? (mailchi.mp) What ideal diversification looks like. caia.org) AI is becoming table stakes for hedge funds. alphaarchitect.com) European investors still prefer dividends over buybacks. papers.ssrn.com) Two factors that drive entrepreneurship. blogs.cfainstitute.org)

Portfolio 291

Portfolio 291

Abnormal Returns

JUNE 16, 2024

apolloacademy.com) What really is the goal of portfolio diversification? (theirrelevantinvestor.com) More investors are facing up to the problem with illiquid alternatives. wsj.com) The S&P 500 has become increasingly concentrated. rogersplanning.blogspot.com) Small advantages, consistently applied, compound over time.

Taxes 317

Taxes Portfolio Marketing Marketing 317

Abnormal Returns

MARCH 31, 2024

awealthofcommonsense.com) Which bonds prove as the best portfolio diversifier? (awealthofcommonsense.com) There's no alpha left in private equity. linkedin.com) Patrick Mahomes finally takes an L. sportico.com) Are index funds propping up the stock market? morningstar.com) The equity risk premium is skimpy at the moment.

Financial Market 313

Financial Market Portfolio Marketing Marketing 313

Abnormal Returns

MAY 19, 2024

Top clicks this week Three assets that don't diversify your portfolio as well as you think. morningstar.com) The problematic math of passing down generational wealth. blogs.cfainstitute.org) International diversification requires a long time horizon. awealthofcommonsense.com) The S&P 500 is now nearly 40% of global market cap.

Math 299

Math Assets Portfolio Marketing 299

Nerd's Eye View

NOVEMBER 22, 2024

Also in industry news this week: Why the announced acquisition of RIA custodian TradePMR by retail brokerage firm Robinhood could prove to be a boon for RIAs on TradePMR's platform, who could receive a wave of referrals from Robinhood's massive base of next-generation retail clients How Morningstar is cutting the "Medalist Ratings" of thousands of (..)

Financial Planner 246

Financial Planner Retirement Retail Retirement Planning 246

Abnormal Returns

OCTOBER 10, 2023

libertystreeteconomics.newyorkfed.org) Portfolio managers Why portfolio managers get fired. morningstar.com) The case for overlaying managed futures to an equity portfolio. (papers.ssrn.com) Box spreads The pros and cons of using box spreads to generate cash-like returns.

Portfolio Management 265

Portfolio Management Startup Portfolio Management 265

Abnormal Returns

OCTOBER 26, 2023

bestinterest.blog) 60/40 portfolios Where the valuation of the 60/40 portfolio stands. morningstar.com) Why the 60/40 portfolio endures. (theirrelevantinvestor.com) The stock-bond correlation does one thing: it changes. (fa-mag.com) fa-mag.com) Stocks outperform bonds over the long run, but not every year or even decade.

Financial Advising 279

Financial Advising Valuation Portfolio Economy 279

Abnormal Returns

JUNE 11, 2024

allocatesmartly.com) Alternatives How to think about crypto's role in a portfolio. papers.ssrn.com) Volume matters for portfolio implementation. (caia.org) Comparing the diversification benefits of bonds vs. trend following. insights.finominal.com) Should tactical strategies trade on the last day of the month?

Media 264

Media Portfolio Economy Accounting 264

Abnormal Returns

MARCH 1, 2024

(wired.com) Finance Joe Weisenthal and Tracy Alloway talks multi-strategy hedge funds with Krishna Kumar, a portfolio manager at Goose Hollow Capital Management. joincolossus.com) Barry Ritholtz talks concentrated portfolios with Andrew Slimmon, managing director at Morgan Stanley Investment Management.

Portfolio Management 276

Portfolio Management Portfolio Management Investments 276

Abnormal Returns

FEBRUARY 4, 2024

allstarcharts.com) Four steps to build a no-fuss portfolio including eliminating redundant accounts. (wsj.com) How major asset classes performed in January 2024. capitalspectator.com) It's not just tech stocks that are working. morningstar.com) Overconfidence is a killer for investors. collabfund.com)

Financial Planning 300

Financial Planning Accounting Portfolio Assets 300

Abnormal Returns

DECEMBER 26, 2023

cnbc.com) A round-up of recent research on portfolio design including 'Outperforming Equal Weighting.' Quant stuff You don't want your AI model to 'hallucinate' when analyzing SEC filings. capitalspectator.com) Regime changes happen in markets. priceactionlab.com) Research Can machine learning help select outperforming mutual funds?

Economics 291

Economics Portfolio Marketing Marketing 291

Abnormal Returns

SEPTEMBER 24, 2024

clearerthinking.org) Research How identifying economic regimes can help in portfolio allocation. Statistics Comparing the Sharpe and Sortino ratios. caia.org) Correlations, 101. alphaarchitect.com) What investors get wrong about high quality stocks. caia.org) You don't need individual securities to get the benefits of tax loss harvesting.

Taxes 270

Taxes Economics Portfolio 270

Abnormal Returns

SEPTEMBER 26, 2023

Portfolio management Fund investors prefer managers who stick to their knitting. papers.ssrn.com) Why portfolio managers invest more research into short positions. papers.ssrn.com) Research The structure of the stock market has changed a lot over time, but the results are still largely the same.

Portfolio Management 259

Portfolio Management Portfolio Management Assets 259

Abnormal Returns

APRIL 14, 2024

morningstar.com) Bond returns are buoying the prospects for a 60/40 portfolio. (radreads.co) 15 investing principles including 'I believe managing one’s behavior is more important than managing one’s investments.' betterletter.substack.com) How you implement a commodities allocation matters. theatlantic.com)

Media 306

Media Portfolio Management Investing 306

Abnormal Returns

MARCH 24, 2024

abnormalreturns.com) Top clicks this week Ten things to know about building a diversified portfolio. Also on the site What is wrong with this picture? How your charitable intentions can get co-opted after you are gone. morningstar.com) How home buying is going to change with the upheaval of realtor commissions.

Commission 307

Commission Numbers Portfolio Marketing 307

Abnormal Returns

JANUARY 28, 2024

theverge.com) Why volatility matters for your portfolio returns. (humbledollar.com) What investors can learn from the career of Nick Saban. savantwealth.com) How to enable Stolen Device Protection on your iOS device. fortunesandfrictions.com) Hedge funds that bet big on China are shutting down. awealthofcommonsense.com)

Portfolio 290

Portfolio Investments Investing Marketing 290

Abnormal Returns

DECEMBER 12, 2023

(investmentecosystem.com) The dispersion in private equity portfolio returns is not unexpected. alphaarchitect.com) Why portfolio managers shift styles. mailchi.mp) Factors You have to squint really hard to find a small-cap effect. insights.finominal.com) The factor ETF space has gotten crowded.

Portfolio Management 264

Portfolio Management Retail Assets Portfolio 264

Abnormal Returns

FEBRUARY 18, 2024

apolloacademy.com) Do you really need a separate allocation to real estate in your portfolio? (axios.com) Why you should diversify internationally. humbledollar.com) Why the Magnificent Seven are outperforming: earnings. morningstar.com) Five steps to create a paycheck in retirement. kindnessfp.com) Markets work: the case of lithium.

Retirement 294

Retirement Portfolio Investing Investments 294

The Big Picture

SEPTEMBER 9, 2023

We discuss his career in machine learning, from Amazon’s recommendation engine to using AI to manage portfolios. The firm applies machine learning to a four step process of data assembly, Prediction Engine, Portfolio Construction, and Execution.

Engineering 325

Engineering Management Portfolio Assets 325

Abnormal Returns

FEBRUARY 28, 2024

(blockworks.co) Strategy Rubin Miller, "Investing on hopes and hunches — making emotional decisions — is why so few portfolios earn the actual market return." behaviouralinvestment.com) Why the 60/40 portfolio isn't going anywhere. fortunesandfrictions.com) The rise of passive investing hasn't broken the markets.

Valuation 279

Valuation Financial Advising Startup Media 279

Abnormal Returns

FEBRUARY 11, 2024

ft.com) A review of "The Four Pillars of Investing, Second Edition: Lessons for Building a Winning Portfolio" by William J. (entrylevel.topdowncharts.com) A look at Magnificent Seven valuations. blogs.cfainstitute.org) All-time stock market highs is not a bearish signal. awealthofcommonsense.com)

Valuation 284

Valuation Portfolio Investing Investments 284

Abnormal Returns

DECEMBER 6, 2023

humbledollar.com) Investing Tony Isola, "It takes character to hold the line and withstand the inevitable short-term portfolio blood-letting." tonyisola.com) Why drawing down a portfolio is so scary. (visualcapitalist.com) Seven lessons on getting older including 'Physical fitness is a lifelong pursuit.'

Retirement 289

Retirement Portfolio Clients Investments 289

Abnormal Returns

APRIL 30, 2024

Factor investing Portfolio construction matters when it comes to factor investing. insights.finominal.com) Does machine learning improve on factor investing? alphaarchitect.com) Research Managed futures returns are lumpy. rcmalternatives.com) What valuations miss. morganstanley.com) How much do valuations matter for multi-asset investing?

Valuation 262

Valuation Media Portfolio Assets 262

Abnormal Returns

JANUARY 9, 2024

equity portfolio, not least of which are behavioral. ERP Does new data put the idea of equity superiority, over bonds, into doubt? morningstar.com) The risks that come along with a 100% U.S. ofdollarsanddata.com) Research What factors are appropriate for defensive investors? alphaarchitect.com) Crowded trades increase crash risks.

Portfolio 276

Portfolio Investing Investments 276

Abnormal Returns

SEPTEMBER 15, 2024

awealthofcommonsense.com) Few investors are able to outperform a passive portfolio. (abnormalreturns.com) Top clicks this week How the new AirPod Pros 2 could upend the hearing aid industry. cnbc.com) Sometimes things really are different this time. mrzepczynski.blogspot.com) The yield curve inversion is over.

Portfolio 299

Portfolio Management Investments Investing 299

Abnormal Returns

OCTOBER 29, 2023

awealthofcommonsense.com) Where the valuation of the 60/40 portfolio stands. (wired.com) Bond bear markets are different than stock bear markets. disciplinefunds.com) Stop betting against America. morningstar.com) Vanguard is no longer always the low cost option. thestreet.com) On the importance of being able to sit on your hands.

Valuation 303

Valuation Economy Financial Market Portfolio 303

Nerd's Eye View

APRIL 10, 2024

Every document that considers the facts around any particular asset class will invariably include that disclaimer, but constructing a portfolio consisting of a mix of equities, fixed income, and other assets requires investors and advicers to make some fundamental assumptions around long-term expected returns and correlations between assets.

Asset Allocation 246

Asset Allocation Wealth Accumulation Assets Portfolio 246

Abnormal Returns

AUGUST 13, 2024

blogs.cfainstitute.org) How VCs drive media coverage of their portfolio companies. Venture capital There is nothing normal about the distribution of angel investment returns. papers.ssrn.com) Research How long can stocks underperform inflation? ofdollarsanddata.com) Retail trading frenzies can have real world impacts.

Distribution 265

Distribution Retail Media Portfolio 265

The Big Picture

AUGUST 17, 2022

What’s obvious is that cheaper is better than more expensive; that there are inherent costs in managing an active portfolio that include more than just trading and taxes but research, analysis, PMs, etc. Concentrated portfolio risk. Perhaps most important of all, are the behavioral advantages of passive. Devouring capitalism.

Taxes 334

Taxes Portfolio Management Investments 334