Momentum Solutions for Retirement

As the surge of boomer retirements continues, commentators have given new thought to what safe withdrawal rates are for retirement accounts.  The topic is especially significant given two additional factors. First, retirement balances are shockingly low for boomers (Ghilarducci 2015)[1].   Second, market fundamentals do not suggest that either bonds or equities will generate reliably strong…

Momentum and Stop Losses

Stop losses are a form of trend following in which you switch from risky assets, such as stocks, to a risk-free or fixed income asset after there are pre-determined cumulative losses. The random walk hypothesis (RWH) was widely accepted in the 1960s and 1970s. It was synonymous with market efficiency. It effectively eliminated any academic…

Sustainable Momentum Investing: Doing Well By Doing Good

Socially Responsible Investing (SRI), also known as Environmental, Social, and Governance (ESG) investing or Impact Investing, is the major application of ethical and social criteria, as well as financial considerations, in making investment decisions. SRI recognizes and incorporates societal needs and benefits in the selection and management of investment portfolios. SRI has a “feel good”…

Giving Investors a Chance

Researchers estimate that the worldwide cost of investment management is approximately $3 trillion per year. Some of this expense is unavoidable, such as the costs associated with custodial fees and for the periodic rebalancing of portfolios. However, most of this high expense is in the form of compensation paid to the managers of actively managed…