Don’t Get Fooled Again
Explore how investors are commonly fooled by current performance metrics. Learn how to correct for these common mistakes and allocate to managers that have the…
Read MoreArticles by Research Affiliates
Are You Underweight FANMAG? Chillax!
Key Points The anti-value, momentum-driven, narrowly concentrated rally in the first half of 2017 has been hostile for strategies that apply a value and rebalancing…
It’s A Bubble. So What?
Key Points The word “bubble” is tossed around with abandon. We offer a rigorous definition for the word, and then test the definition against current…
(Webinar Replay) CAPE Fear: Why CAPE Naysayers are Wrong
Rob Arnott discusses US CAPE ratios which are at levels previously reached only in 1929 and during the tech bubble. Should we fear the lofty…
Unlocking The Performance Potential In ESG Investing
Key Points The demand for socially responsible investing strategies is growing as a means to manage environmental, social, and governance (ESG)–related risks—which can impact long-term…
Research Affiliates: Why CAPE Naysayers Are Wrong
Key Points The CAPE (cyclically adjusted PE) ratio is not a useful timing signal for market turning points, but is a powerful predictor of long-term…
Performance Measurement: How To Do It If We Must
Key Points Investment professionals can overdo performance measurement simply because technology makes it so easy and it seems a worthwhile task to constantly gauge if clients…
When Value Goes Global
Key Points The value premium is traditionally associated with stock selection and market timing, however, value investing works just as well when applied globally across…
Craftsmanship In Smart Beta
Key Points Investors seeking to add smart beta and factor strategies to their portfolios should consider the four craftsmanship elements of product design: 1) universe…
Is Manager Selection Worth The Effort ?
Key Points Investors, particularly retail investors, are predisposed to chase the returns of investment managers. The academic literature shows manager selection fails to produce positive…
The Most Dangerous (And Ubiquitous) Shortcut In Financial Planning
Key Points Using historical returns to forecast the future is one of the most common shortcuts in financial planning. Investment advisors who use only past…
Building Portfolios: Diversification Without The Heartburn
Key Points Adding diversifying assets to portfolios of mainstream stocks and bonds can improve expected returns and lead to better long-term investment outcomes. Finding the…
The Bubble That Never Came (And Other Misconceptions About Treasury Bonds)
Key Points Contrary to common wisdom, we show that low yields do not imply that US Treasury securities are expensive. After accounting for macroeconomic trends,…
Pricing Stocks And Bonds
Key Points We form asset-class forecasts because they guide our ultimate aim: to fulfill our fiduciary duty of building a portfolio of assets that will…
Diversification Strikes Again: Evidence From Global Equity Factors
Key Points International diversification has historically improved equity factor portfolio performance. Diversification benefits do not appear to be equivalent across geographies. Geographically distant regions appear…