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. … Read more
Research Affiliates
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 … Read more
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 … Read more
Can Momentum Investing Be Saved?
Key Points Simulated portfolios based on momentum add remarkable value, in most time periods and in most asset classes, all … Read more
A Smoother Path To Outperformance With Multi-Factor Smart Beta Investing
In this webinar, Research Affiliates CIO Chris Brightman explains how endemic trend chasing—allocating money to what is popular and likely … Read more
Past Realized Returns vs. Reasonable Future Expected Returns
Key Points Using historical returns to forecast the future is one of the most common shortcuts in financial planning. Investment … Read more
Risk: Preparing Clients For An Uncertain Journey
Key Points The typical advisor–client relationship too often ends with a discussion of volatility in absolute returns. Extending the discussion … Read more
Ignoring Starting Yields-Nabbing This “Usual Suspect” in Poor Investment Outcomes
Key Points Using historical returns to forecast the future is one of the most common shortcuts in financial planning. Investment … Read more
The Folly Of Hiring Winners And Firing Losers
Key Points The standard procedure of firing losing managers and hiring winning managers based on their past three-year performance leads … Read more
Time Diversification Redux
Key Points Conventional risk measures may not accurately describe the volatility investors actually experience, especially for portfolios servicing their retirement … Read more
Smart Beta – Backtest vs. Live
Key Points The outperformance observed before a typical smart beta index is launched virtually disappears once it’s live, yet most … Read more
Long-Term Commodity Investments
When you think of commodity market performance, what’s one of the first things you think of? Positive or negative performance? … Read more
Cost And Capacity: Comparing Smart Beta Strategies
Key Points Market impact trading costs arise from buying and selling securities at temporarily impacted prices during index rebalances. These … Read more
A Smart Beta For Sustainable Growth
Key Points Traditional growth indices, designed as the inverse of value, have delivered negative excess returns and failed to provide … Read more
I Was Blind, But Now I See: Bubbles in Academe
Key Points Research fads, which create bubbles in academia, gobble up resources and crowd out exploration of competing ideas. Investment-related … Read more