One of the more overlooked areas of quantitative investing is how to integrate quant strategies into a diversified portfolio. Let’s look at a few of the issues involved and some possible solutions. I’ve discussed the big allocation decision already, i.e. how much to put into quant strategies vs bonds already. I Read more…
It’s been a while since I’ve done updates for the various IVY portfolios. I’ve noticed that investors still have trouble implementing these portfolios so I decided to start doing the updates again. At least for a few months. Hopefully this helps investors who are trying to implement these portfolios or Read more…
Unfortunately, portfolios are not like a certain type of ring, forged with magical powers to rule over the world, man/hobbit/elf kind, and all other types of investment portfolios. There is no one portfolio to rule them all. There are many different styles and types of portfolios with very different characteristics, asset Read more…
Early in 2013 I presented a quantitative strategy based on dividend paying stocks from OShaughnessy’s What Works On Wall Street. The Enhanced Dividend Yield strategy. The strategy provides market beating returns, higher sharpe ratios, and a healthy dividend stream. One of the best things about this strategy is it’s high Read more…
Today I wanted to talk about the forecasting of future returns and more importantly what implications future returns have for SWRs (Safe Withdrawal Rates). As I showed in my last post, the first 10 year period real return in retirement is the best predictor of SWRs for 30 year retirement Read more…
The starting year of retirement makes a huge difference in the success or failure of a retirement plan. This is the key difference between the accumulation phase of investing and the withdrawal phase of investing. Yet the majority of investing writing does not take this key difference into account when Read more…
Maybe the best thing about quant or automatic investing is the peace of mind it provides during times of market turmoil. While I would by no means characterize the recent market action as ‘turmoil’, many investors seem to think it is. It always amazes me how short term the investor Read more…
Hard to believe it has been 2 years since I last updated my recipe for a happy retirement. And 2 years before that I had the original post. Every 2 years seems like a nice interval to revisit my thoughts in this area. We are now getting close to completing Read more…
Value investing holds the promise of great returns over the long run and appeals to many investor’s innate sense of value derived from their personal experiences. But value investing has a couple of key downsides that make it very hard for many investors to stick with the approach long enough Read more…
Today I finally get around to doing something I mentioned way back in my first post on quantitative investing. Quant portfolios can help an investor handily beat the market over time and often with even lower risk. If that is the case then how could they impact safe withdrawal rates Read more…
Most of the ink spilled in talking about retirement is limited to the investment side of the equation. How much do you need for retirement? How much can you withdraw from your portfolio in retirement? How should I invest my retirement assets? And obviously, all these questions are critical. But Read more…