Category: Tactical Asset Allocation

Momentum is the tendency of recent price changes in an investment or asset class to persist for some time into the future. The evidence for momentum is pervasive, supported by academic and practitioner research and more than 300 published papers over the past decades. I won't attempt to summarize the momentum literature, but encourage investors to learn more about it, starting with the...

The majority of popular investment advice follows a predictable recipe: adopt a diversified portfolio of low-cost index funds and determine your asset allocations. Buy and hold the funds, and regularly add to your savings. Rebalance your portfolio at the end of each year, and repeat until you’re 65. Retire happily. This advice is often accompanied by long-term charts that show the impressive returns of stocks and bonds over many decades. Looks great, right? But unfortunately for many... [more]