TAA vs buy and hold in overvalued markets

US stocks are expensive. There seems to be article after article on the expensiveness of US stocks these days. Plus, bonds in general are really really expensive. Both US stocks and all bonds are in the top (90th+ percentile) tiers of expensiveness relative to history. As Cliff Asness of AQR points out, the problem is that they are both at…

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Tips for trading ETFs in TAA portfolios

I get a lot of questions about the mechanics of buying and selling the ETFs that comprise the tactical asset allocation (TAA) portfolios that I discuss on the blog. In this post I’ll address some common concerns and issues with respect to ETFs and share some tips for trading them in TAA portfolios. When implementing buy and hold portfolios with…

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The biggest lie in finance – buy and hold

There are lots of lies in finance or more subtly put, a lot of things wrong with conventional wisdom. I have trouble deciding which lie is the biggest but definitely one of the candidates is ‘Stocks for the Long Run’ which usually means that buying and holding the market index is the best way to generate wealth over the long…

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