Tag Archives: small cap

Introduction To Quantitative Investing

What if I could introduce you to an investment style for equities that can soundly beat the market over time and only requires a few days a year of work? Interested? I thought so. Today I want to introduce you to Quantitative Investing and why you should consider incorporating it into your investment portfolio. Quantitative Investing is a fancy term for systematic, structured investing that automates buy and sell decisions. It represents a combination of passive and active investing. Other terms for it are automatic investing or computerized investing. Many investors are familiar with some very infamous stories of quantitative investing gone … Continue reading

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Beating the market to maximize retirement income – part II

A while back I wrote about some historical analysis I had done that showed several ways that an investor could achieve market beating returns and thus maximize retirement income. It has been known for a long time that several ‘factors’ or characteristics of stocks generate market beating returns. The two classic factors are value and size. Value stocks outperform the market over long periods of time. Small cap stocks outperform as well. The third and newest factor, at least relative to value and size, is momentum. I also showed that contrary to efficient market theory these extra returns do not … Continue reading

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Beating the market to maximize retirement income

Warning, this is a somewhat geeky technical post! Besides accumulating more wealth by working longer there is one very direct way to increase your income in retirement. Beat the market’s return. Higher returns will lead to higher SWRs (safe withdrawal rates) for the most part. (The other way to increase retirement income is to reduce volatility). Of course, most would say that this is not possible over the long term. The market is efficient etc… Thus, most of the standard retirement asset allocation models that give us the 4% rule are based on a a market index of stocks, usually the SP500 … Continue reading

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